Correlation Between Sichuan Jinshi and Shengda Mining
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By analyzing existing cross correlation between Sichuan Jinshi Technology and Shengda Mining Co, you can compare the effects of market volatilities on Sichuan Jinshi 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 Sichuan Jinshi with a short position of Shengda Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Jinshi and Shengda Mining.
Diversification Opportunities for Sichuan Jinshi and Shengda Mining
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sichuan and Shengda is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Jinshi Technology and Shengda Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengda Mining and Sichuan Jinshi 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 Sichuan Jinshi Technology 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 Sichuan Jinshi i.e., Sichuan Jinshi and Shengda Mining go up and down completely randomly.
Pair Corralation between Sichuan Jinshi and Shengda Mining
Assuming the 90 days trading horizon Sichuan Jinshi Technology is expected to under-perform the Shengda Mining. In addition to that, Sichuan Jinshi is 1.65 times more volatile than Shengda Mining Co. It trades about -0.18 of its total potential returns per unit of risk. Shengda Mining Co is currently generating about -0.24 per unit of volatility. If you would invest 1,338 in Shengda Mining Co on October 12, 2024 and sell it today you would lose (106.00) from holding Shengda Mining Co or give up 7.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Jinshi Technology vs. Shengda Mining Co
Performance |
| Timeline |
| Sichuan Jinshi Technology |
| Shengda Mining |
Sichuan Jinshi and Shengda Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Jinshi and Shengda Mining
The main advantage of trading using opposite Sichuan Jinshi and Shengda Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Jinshi 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.| Sichuan Jinshi vs. Zhejiang Yongjin Metal | Sichuan Jinshi vs. Tongling Nonferrous Metals | Sichuan Jinshi vs. Beijing Sanyuan Foods | Sichuan Jinshi vs. Eastroc Beverage Group |
| Shengda Mining vs. Sichuan Jinshi Technology | Shengda Mining vs. Winner Medical Co | Shengda Mining vs. Allgens Medical Technology | Shengda Mining vs. Touchstone International Medical |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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