Correlation Between Shaanxi Construction and Shengda Mining
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By analyzing existing cross correlation between Shaanxi Construction Machinery and Shengda Mining Co, you can compare the effects of market volatilities on Shaanxi Construction 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 Shaanxi Construction with a short position of Shengda Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shaanxi Construction and Shengda Mining.
Diversification Opportunities for Shaanxi Construction and Shengda Mining
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shaanxi and Shengda is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Shaanxi Construction Machinery and Shengda Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengda Mining and Shaanxi Construction 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 Shaanxi Construction Machinery 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 Shaanxi Construction i.e., Shaanxi Construction and Shengda Mining go up and down completely randomly.
Pair Corralation between Shaanxi Construction and Shengda Mining
Assuming the 90 days trading horizon Shaanxi Construction Machinery is expected to under-perform the Shengda Mining. In addition to that, Shaanxi Construction is 2.54 times more volatile than Shengda Mining Co. It trades about -0.19 of its total potential returns per unit of risk. Shengda Mining Co is currently generating about -0.24 per unit of volatility. If you would invest 1,338 in Shengda Mining Co on October 12, 2024 and sell it today you would lose (106.00) from holding Shengda Mining Co or give up 7.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shaanxi Construction Machinery vs. Shengda Mining Co
Performance |
| Timeline |
| Shaanxi Construction |
| Shengda Mining |
Shaanxi Construction and Shengda Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shaanxi Construction and Shengda Mining
The main advantage of trading using opposite Shaanxi Construction and Shengda Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shaanxi Construction 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.| Shaanxi Construction vs. Shanghai CEO Environmental | Shaanxi Construction vs. China Asset Management | Shaanxi Construction vs. Sharetronic Data Technology | Shaanxi Construction vs. ButOne Information Corp |
| Shengda Mining vs. Hongrun Construction Group | Shengda Mining vs. Chengdu Spaceon Electronics | Shengda Mining vs. Shaanxi Construction Machinery | Shengda Mining vs. Harvest Fund Management |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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