Correlation Between Guangdong Tengen and Shengda Mining
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By analyzing existing cross correlation between Guangdong Tengen Industrial and Shengda Mining Co, you can compare the effects of market volatilities on Guangdong Tengen 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 Guangdong Tengen with a short position of Shengda Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Tengen and Shengda Mining.
Diversification Opportunities for Guangdong Tengen and Shengda Mining
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guangdong and Shengda is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Tengen Industrial and Shengda Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengda Mining and Guangdong Tengen 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 Guangdong Tengen Industrial 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 Guangdong Tengen i.e., Guangdong Tengen and Shengda Mining go up and down completely randomly.
Pair Corralation between Guangdong Tengen and Shengda Mining
Assuming the 90 days trading horizon Guangdong Tengen is expected to generate 1.7 times less return on investment than Shengda Mining. In addition to that, Guangdong Tengen is 2.16 times more volatile than Shengda Mining Co. It trades about 0.06 of its total potential returns per unit of risk. Shengda Mining Co is currently generating about 0.22 per unit of volatility. If you would invest 1,241 in Shengda Mining Co on October 22, 2024 and sell it today you would earn a total of 117.00 from holding Shengda Mining Co or generate 9.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Tengen Industrial vs. Shengda Mining Co
Performance |
| Timeline |
| Guangdong Tengen Ind |
| Shengda Mining |
Guangdong Tengen and Shengda Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Tengen and Shengda Mining
The main advantage of trading using opposite Guangdong Tengen and Shengda Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Tengen 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.| Guangdong Tengen vs. Shengda Mining Co | Guangdong Tengen vs. JCHX Mining Management | Guangdong Tengen vs. Zijin Mining Group | Guangdong Tengen vs. Servyou Software Group |
| Shengda Mining vs. Shuhua Sports Co | Shengda Mining vs. Anhui Jianghuai Automobile | Shengda Mining vs. Iat Automobile Technology | Shengda Mining vs. China Sports Industry |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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