Correlation Between Dongguan Tarry and Shengda Mining
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By analyzing existing cross correlation between Dongguan Tarry Electronics and Shengda Mining Co, you can compare the effects of market volatilities on Dongguan Tarry 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 Dongguan Tarry with a short position of Shengda Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongguan Tarry and Shengda Mining.
Diversification Opportunities for Dongguan Tarry and Shengda Mining
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dongguan and Shengda is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Dongguan Tarry Electronics and Shengda Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengda Mining and Dongguan Tarry 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 Dongguan Tarry Electronics 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 Dongguan Tarry i.e., Dongguan Tarry and Shengda Mining go up and down completely randomly.
Pair Corralation between Dongguan Tarry and Shengda Mining
Assuming the 90 days trading horizon Dongguan Tarry Electronics is expected to under-perform the Shengda Mining. In addition to that, Dongguan Tarry is 1.56 times more volatile than Shengda Mining Co. It trades about -0.09 of its total potential returns per unit of risk. Shengda Mining Co is currently generating about 0.29 per unit of volatility. If you would invest 1,238 in Shengda Mining Co on October 28, 2024 and sell it today you would earn a total of 152.00 from holding Shengda Mining Co or generate 12.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongguan Tarry Electronics vs. Shengda Mining Co
Performance |
| Timeline |
| Dongguan Tarry Elect |
| Shengda Mining |
Dongguan Tarry and Shengda Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongguan Tarry and Shengda Mining
The main advantage of trading using opposite Dongguan Tarry and Shengda Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongguan Tarry 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.| Dongguan Tarry vs. Xiandai Investment Co | Dongguan Tarry vs. Hubei Tech Semiconductors | Dongguan Tarry vs. Union Semiconductor Co | Dongguan Tarry vs. China Asset Management |
| 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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