Correlation Between Fujian Oriental and Shengda Mining
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By analyzing existing cross correlation between Fujian Oriental Silver and Shengda Mining Co, you can compare the effects of market volatilities on Fujian Oriental 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 Fujian Oriental with a short position of Shengda Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Oriental and Shengda Mining.
Diversification Opportunities for Fujian Oriental and Shengda Mining
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fujian and Shengda is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Oriental Silver and Shengda Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengda Mining and Fujian Oriental 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 Fujian Oriental Silver 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 Fujian Oriental i.e., Fujian Oriental and Shengda Mining go up and down completely randomly.
Pair Corralation between Fujian Oriental and Shengda Mining
Assuming the 90 days trading horizon Fujian Oriental is expected to generate 1.49 times less return on investment than Shengda Mining. In addition to that, Fujian Oriental is 1.21 times more volatile than Shengda Mining Co. It trades about 0.01 of its total potential returns per unit of risk. Shengda Mining Co is currently generating about 0.01 per unit of volatility. If you would invest 1,386 in Shengda Mining Co on September 12, 2024 and sell it today you would lose (59.00) from holding Shengda Mining Co or give up 4.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.7% |
| Values | Daily Returns |
Fujian Oriental Silver vs. Shengda Mining Co
Performance |
| Timeline |
| Fujian Oriental Silver |
| Shengda Mining |
Fujian Oriental and Shengda Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Oriental and Shengda Mining
The main advantage of trading using opposite Fujian Oriental and Shengda Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Oriental 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.| Fujian Oriental vs. Guangdong Jingyi Metal | Fujian Oriental vs. Bomin Electronics Co | Fujian Oriental vs. Xinjiang Baodi Mining | Fujian Oriental vs. Dongguan Tarry Electronics |
| Shengda Mining vs. Zijin Mining Group | Shengda Mining vs. Wanhua Chemical Group | Shengda Mining vs. Baoshan Iron Steel | Shengda Mining vs. Rongsheng Petrochemical Co |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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