Correlation Between Shengda Mining and Puya Semiconductor
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By analyzing existing cross correlation between Shengda Mining Co and Puya Semiconductor Shanghai, you can compare the effects of market volatilities on Shengda Mining and Puya Semiconductor 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 Puya Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shengda Mining and Puya Semiconductor.
Diversification Opportunities for Shengda Mining and Puya Semiconductor
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shengda and Puya is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Shengda Mining Co and Puya Semiconductor Shanghai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Puya Semiconductor 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 Puya Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Puya Semiconductor has no effect on the direction of Shengda Mining i.e., Shengda Mining and Puya Semiconductor go up and down completely randomly.
Pair Corralation between Shengda Mining and Puya Semiconductor
Assuming the 90 days trading horizon Shengda Mining is expected to generate 1.21 times less return on investment than Puya Semiconductor. But when comparing it to its historical volatility, Shengda Mining Co is 2.19 times less risky than Puya Semiconductor. It trades about 0.29 of its potential returns per unit of risk. Puya Semiconductor Shanghai is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 10,857 in Puya Semiconductor Shanghai on October 28, 2024 and sell it today you would earn a total of 1,455 from holding Puya Semiconductor Shanghai or generate 13.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shengda Mining Co vs. Puya Semiconductor Shanghai
Performance |
| Timeline |
| Shengda Mining |
| Puya Semiconductor |
Shengda Mining and Puya Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shengda Mining and Puya Semiconductor
The main advantage of trading using opposite Shengda Mining and Puya Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shengda Mining position performs unexpectedly, Puya Semiconductor 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 Puya Semiconductor will offset losses from the drop in Puya Semiconductor'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 |
| Puya Semiconductor vs. Cloud Live Technology | Puya Semiconductor vs. Nanjing Putian Telecommunications | Puya Semiconductor vs. Shenzhen Coship Electronics | Puya Semiconductor vs. Shenzhen Hifuture Electric |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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