Correlation Between Shandong Polymer and Shengda Mining
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By analyzing existing cross correlation between Shandong Polymer Biochemicals and Shengda Mining Co, you can compare the effects of market volatilities on Shandong Polymer 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 Shandong Polymer with a short position of Shengda Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Polymer and Shengda Mining.
Diversification Opportunities for Shandong Polymer and Shengda Mining
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shandong and Shengda is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Polymer Biochemicals and Shengda Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengda Mining and Shandong Polymer 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 Shandong Polymer Biochemicals 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 Shandong Polymer i.e., Shandong Polymer and Shengda Mining go up and down completely randomly.
Pair Corralation between Shandong Polymer and Shengda Mining
Assuming the 90 days trading horizon Shandong Polymer Biochemicals is expected to generate 1.37 times more return on investment than Shengda Mining. However, Shandong Polymer is 1.37 times more volatile than Shengda Mining Co. It trades about 0.0 of its potential returns per unit of risk. Shengda Mining Co is currently generating about -0.06 per unit of risk. If you would invest 496.00 in Shandong Polymer Biochemicals on September 13, 2024 and sell it today you would lose (4.00) from holding Shandong Polymer Biochemicals or give up 0.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Polymer Biochemicals vs. Shengda Mining Co
Performance |
| Timeline |
| Shandong Polymer Bio |
| Shengda Mining |
Shandong Polymer and Shengda Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Polymer and Shengda Mining
The main advantage of trading using opposite Shandong Polymer and Shengda Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Polymer 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.| Shandong Polymer vs. Zhejiang Kingland Pipeline | Shandong Polymer vs. Hangzhou Pinming Software | Shandong Polymer vs. Inspur Software Co | Shandong Polymer vs. Wuhan Hvsen Biotechnology |
| 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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