Correlation Between Dongfeng Automobile and Shengda Mining
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By analyzing existing cross correlation between Dongfeng Automobile Co and Shengda Mining Co, you can compare the effects of market volatilities on Dongfeng Automobile 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 Dongfeng Automobile with a short position of Shengda Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongfeng Automobile and Shengda Mining.
Diversification Opportunities for Dongfeng Automobile and Shengda Mining
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dongfeng and Shengda is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Dongfeng Automobile Co and Shengda Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengda Mining and Dongfeng Automobile 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 Dongfeng Automobile Co 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 Dongfeng Automobile i.e., Dongfeng Automobile and Shengda Mining go up and down completely randomly.
Pair Corralation between Dongfeng Automobile and Shengda Mining
Assuming the 90 days trading horizon Dongfeng Automobile Co is expected to under-perform the Shengda Mining. In addition to that, Dongfeng Automobile is 1.27 times more volatile than Shengda Mining Co. It trades about -0.07 of its total potential returns per unit of risk. Shengda Mining Co is currently generating about 0.46 per unit of volatility. If you would invest 1,184 in Shengda Mining Co on November 4, 2024 and sell it today you would earn a total of 200.00 from holding Shengda Mining Co or generate 16.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongfeng Automobile Co vs. Shengda Mining Co
Performance |
| Timeline |
| Dongfeng Automobile |
| Shengda Mining |
Dongfeng Automobile and Shengda Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongfeng Automobile and Shengda Mining
The main advantage of trading using opposite Dongfeng Automobile and Shengda Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongfeng Automobile 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.| Dongfeng Automobile vs. GRG Banking Equipment | Dongfeng Automobile vs. China Everbright Bank | Dongfeng Automobile vs. Zhejiang Construction Investment | Dongfeng Automobile vs. Shenzhen Topway Video |
| Shengda Mining vs. Anhui Shiny Electronic | Shengda Mining vs. Bloomage Biotechnology Corp | Shengda Mining vs. Weihai Honglin Electronic | Shengda Mining vs. Jiangyin Jianghua Microelectronics |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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