Correlation Between Hangzhou Minsheng and Shengda Mining
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hangzhou Minsheng Healthcare and Shengda Mining Co, you can compare the effects of market volatilities on Hangzhou Minsheng 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 Hangzhou Minsheng with a short position of Shengda Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Minsheng and Shengda Mining.
Diversification Opportunities for Hangzhou Minsheng and Shengda Mining
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hangzhou and Shengda is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Minsheng Healthcare and Shengda Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengda Mining and Hangzhou Minsheng 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 Hangzhou Minsheng Healthcare 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 Hangzhou Minsheng i.e., Hangzhou Minsheng and Shengda Mining go up and down completely randomly.
Pair Corralation between Hangzhou Minsheng and Shengda Mining
Assuming the 90 days trading horizon Hangzhou Minsheng is expected to generate 1.73 times less return on investment than Shengda Mining. In addition to that, Hangzhou Minsheng is 1.21 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 0.12 per unit of volatility. If you would invest 1,008 in Shengda Mining Co on October 18, 2024 and sell it today you would earn a total of 259.00 from holding Shengda Mining Co or generate 25.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.75% |
| Values | Daily Returns |
Hangzhou Minsheng Healthcare vs. Shengda Mining Co
Performance |
| Timeline |
| Hangzhou Minsheng |
| Shengda Mining |
Hangzhou Minsheng and Shengda Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Minsheng and Shengda Mining
The main advantage of trading using opposite Hangzhou Minsheng and Shengda Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Minsheng 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.| Hangzhou Minsheng vs. Jinhe Biotechnology Co | Hangzhou Minsheng vs. Dawning Information Industry | Hangzhou Minsheng vs. Wuhan Hvsen Biotechnology | Hangzhou Minsheng vs. East Money Information |
| Shengda Mining vs. Hangzhou Minsheng Healthcare | Shengda Mining vs. Lotus Health Group | Shengda Mining vs. Ningxia Building Materials | Shengda Mining vs. Keda Clean Energy |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |