Correlation Between Shengda Mining and Nanjing Vishee
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By analyzing existing cross correlation between Shengda Mining Co and Nanjing Vishee Medical, you can compare the effects of market volatilities on Shengda Mining and Nanjing Vishee and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Shengda Mining with a short position of Nanjing Vishee. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shengda Mining and Nanjing Vishee.
Diversification Opportunities for Shengda Mining and Nanjing Vishee
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shengda and Nanjing is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Shengda Mining Co and Nanjing Vishee Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing Vishee Medical and Shengda Mining is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Shengda Mining Co are associated (or correlated) with Nanjing Vishee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing Vishee Medical has no effect on the direction of Shengda Mining i.e., Shengda Mining and Nanjing Vishee go up and down completely randomly.
Pair Corralation between Shengda Mining and Nanjing Vishee
Assuming the 90 days trading horizon Shengda Mining Co is expected to generate 0.45 times more return on investment than Nanjing Vishee. However, Shengda Mining Co is 2.21 times less risky than Nanjing Vishee. It trades about -0.18 of its potential returns per unit of risk. Nanjing Vishee Medical is currently generating about -0.28 per unit of risk. If you would invest 1,323 in Shengda Mining Co on October 14, 2024 and sell it today you would lose (75.00) from holding Shengda Mining Co or give up 5.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shengda Mining Co vs. Nanjing Vishee Medical
Performance |
| Timeline |
| Shengda Mining |
| Nanjing Vishee Medical |
Shengda Mining and Nanjing Vishee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shengda Mining and Nanjing Vishee
The main advantage of trading using opposite Shengda Mining and Nanjing Vishee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shengda Mining position performs unexpectedly, Nanjing Vishee can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Nanjing Vishee will offset losses from the drop in Nanjing Vishee's long position.| Shengda Mining vs. Zijin Mining Group | Shengda Mining vs. Wanhua Chemical Group | Shengda Mining vs. Baoshan Iron Steel | Shengda Mining vs. Shandong Gold Mining |
| Nanjing Vishee vs. Shengda Mining Co | Nanjing Vishee vs. Hangzhou Pinming Software | Nanjing Vishee vs. Shenzhen Silver Basis | Nanjing Vishee vs. Dareway Software Co |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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