Correlation Between Anhui Huaertai and Shengda Mining
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By analyzing existing cross correlation between Anhui Huaertai Chemical and Shengda Mining Co, you can compare the effects of market volatilities on Anhui Huaertai 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 Anhui Huaertai with a short position of Shengda Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huaertai and Shengda Mining.
Diversification Opportunities for Anhui Huaertai and Shengda Mining
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anhui and Shengda is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huaertai Chemical and Shengda Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengda Mining and Anhui Huaertai 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 Anhui Huaertai Chemical 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 Anhui Huaertai i.e., Anhui Huaertai and Shengda Mining go up and down completely randomly.
Pair Corralation between Anhui Huaertai and Shengda Mining
Assuming the 90 days trading horizon Anhui Huaertai Chemical is expected to generate 0.79 times more return on investment than Shengda Mining. However, Anhui Huaertai Chemical is 1.27 times less risky than Shengda Mining. It trades about 0.08 of its potential returns per unit of risk. Shengda Mining Co is currently generating about 0.0 per unit of risk. If you would invest 962.00 in Anhui Huaertai Chemical on September 5, 2024 and sell it today you would earn a total of 205.00 from holding Anhui Huaertai Chemical or generate 21.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.17% |
| Values | Daily Returns |
Anhui Huaertai Chemical vs. Shengda Mining Co
Performance |
| Timeline |
| Anhui Huaertai Chemical |
| Shengda Mining |
Anhui Huaertai and Shengda Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huaertai and Shengda Mining
The main advantage of trading using opposite Anhui Huaertai and Shengda Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huaertai 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.| Anhui Huaertai vs. Shengda Mining Co | Anhui Huaertai vs. Guangdong Silvere Sci | Anhui Huaertai vs. Xiandai Investment Co | Anhui Huaertai vs. Jiangsu Yueda Investment |
| Shengda Mining vs. Kontour Medical Technology | Shengda Mining vs. Changchun Faway Automobile | Shengda Mining vs. Jafron Biomedical Co | Shengda Mining vs. Contec Medical Systems |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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