Correlation Between Zoje Resources and Shengda Mining
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By analyzing existing cross correlation between Zoje Resources Investment and Shengda Mining Co, you can compare the effects of market volatilities on Zoje Resources 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 Zoje Resources with a short position of Shengda Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoje Resources and Shengda Mining.
Diversification Opportunities for Zoje Resources and Shengda Mining
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zoje and Shengda is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Zoje Resources 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 Zoje Resources 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 Zoje Resources 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 Zoje Resources i.e., Zoje Resources and Shengda Mining go up and down completely randomly.
Pair Corralation between Zoje Resources and Shengda Mining
Assuming the 90 days trading horizon Zoje Resources Investment is expected to under-perform the Shengda Mining. In addition to that, Zoje Resources is 1.5 times more volatile than Shengda Mining Co. It trades about -0.07 of its total potential returns per unit of risk. Shengda Mining Co is currently generating about 0.42 per unit of volatility. If you would invest 1,207 in Shengda Mining Co on November 5, 2024 and sell it today you would earn a total of 177.00 from holding Shengda Mining Co or generate 14.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zoje Resources Investment vs. Shengda Mining Co
Performance |
| Timeline |
| Zoje Resources Investment |
| Shengda Mining |
Zoje Resources and Shengda Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoje Resources and Shengda Mining
The main advantage of trading using opposite Zoje Resources and Shengda Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoje Resources 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.| Zoje Resources vs. Hainan Haiqi Transportation | Zoje Resources vs. Sichuan Fulin Transportation | Zoje Resources vs. Longjian Road Bridge | Zoje Resources vs. Shanghai CEO Environmental |
| 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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