Correlation Between Beijing Mainstreets and Shengda Mining
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By analyzing existing cross correlation between Beijing Mainstreets Investment and Shengda Mining Co, you can compare the effects of market volatilities on Beijing Mainstreets and Shengda Mining 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 Beijing Mainstreets with a short position of Shengda Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Mainstreets and Shengda Mining.
Diversification Opportunities for Beijing Mainstreets and Shengda Mining
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Shengda is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Mainstreets Investment and Shengda Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengda Mining and Beijing Mainstreets 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 Beijing Mainstreets Investment are associated (or correlated) with Shengda Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shengda Mining has no effect on the direction of Beijing Mainstreets i.e., Beijing Mainstreets and Shengda Mining go up and down completely randomly.
Pair Corralation between Beijing Mainstreets and Shengda Mining
Assuming the 90 days trading horizon Beijing Mainstreets Investment is expected to under-perform the Shengda Mining. In addition to that, Beijing Mainstreets is 1.14 times more volatile than Shengda Mining Co. It trades about -0.1 of its total potential returns per unit of risk. Shengda Mining Co is currently generating about 0.03 per unit of volatility. If you would invest 1,201 in Shengda Mining Co on September 14, 2024 and sell it today you would earn a total of 154.00 from holding Shengda Mining Co or generate 12.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.58% |
| Values | Daily Returns |
Beijing Mainstreets Investment vs. Shengda Mining Co
Performance |
| Timeline |
| Beijing Mainstreets |
| Shengda Mining |
Beijing Mainstreets and Shengda Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Mainstreets and Shengda Mining
The main advantage of trading using opposite Beijing Mainstreets and Shengda Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Mainstreets position performs unexpectedly, Shengda Mining 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 Shengda Mining will offset losses from the drop in Shengda Mining's long position.| Beijing Mainstreets vs. China Life Insurance | Beijing Mainstreets vs. Cinda Securities Co | Beijing Mainstreets vs. Piotech Inc A | Beijing Mainstreets vs. Dongxing Sec Co |
| Shengda Mining vs. Zijin Mining Group | Shengda Mining vs. Wanhua Chemical Group | Shengda Mining vs. Baoshan Iron Steel | Shengda Mining vs. Shandong Gold Mining |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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