Correlation Between Sinomine Resource and Shanghai Phichem
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By analyzing existing cross correlation between Sinomine Resource Exploration and Shanghai Phichem Material, you can compare the effects of market volatilities on Sinomine Resource and Shanghai Phichem 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 Sinomine Resource with a short position of Shanghai Phichem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomine Resource and Shanghai Phichem.
Diversification Opportunities for Sinomine Resource and Shanghai Phichem
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sinomine and Shanghai is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Sinomine Resource Exploration and Shanghai Phichem Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Phichem Material and Sinomine Resource 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 Sinomine Resource Exploration are associated (or correlated) with Shanghai Phichem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Phichem Material has no effect on the direction of Sinomine Resource i.e., Sinomine Resource and Shanghai Phichem go up and down completely randomly.
Pair Corralation between Sinomine Resource and Shanghai Phichem
Assuming the 90 days trading horizon Sinomine Resource Exploration is expected to generate 0.95 times more return on investment than Shanghai Phichem. However, Sinomine Resource Exploration is 1.05 times less risky than Shanghai Phichem. It trades about -0.16 of its potential returns per unit of risk. Shanghai Phichem Material is currently generating about -0.32 per unit of risk. If you would invest 3,778 in Sinomine Resource Exploration on October 15, 2024 and sell it today you would lose (248.00) from holding Sinomine Resource Exploration or give up 6.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinomine Resource Exploration vs. Shanghai Phichem Material
Performance |
| Timeline |
| Sinomine Resource |
| Shanghai Phichem Material |
Sinomine Resource and Shanghai Phichem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomine Resource and Shanghai Phichem
The main advantage of trading using opposite Sinomine Resource and Shanghai Phichem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomine Resource position performs unexpectedly, Shanghai Phichem 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 Shanghai Phichem will offset losses from the drop in Shanghai Phichem's long position.| Sinomine Resource vs. Shanghai Phichem Material | Sinomine Resource vs. Dr Peng Telecom | Sinomine Resource vs. Bank of Communications | Sinomine Resource vs. Jinsanjiang Silicon Material |
| Shanghai Phichem vs. Tongling Nonferrous Metals | Shanghai Phichem vs. Beijing Bewinner Communications | Shanghai Phichem vs. Fiberhome Telecommunication Technologies | Shanghai Phichem vs. Hainan Airlines Co |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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