Correlation Between Zhejiang Yongjin and Shengda Mining
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By analyzing existing cross correlation between Zhejiang Yongjin Metal and Shengda Mining Co, you can compare the effects of market volatilities on Zhejiang Yongjin 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 Zhejiang Yongjin with a short position of Shengda Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yongjin and Shengda Mining.
Diversification Opportunities for Zhejiang Yongjin and Shengda Mining
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhejiang and Shengda is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yongjin Metal and Shengda Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengda Mining and Zhejiang Yongjin 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 Zhejiang Yongjin Metal 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 Zhejiang Yongjin i.e., Zhejiang Yongjin and Shengda Mining go up and down completely randomly.
Pair Corralation between Zhejiang Yongjin and Shengda Mining
Assuming the 90 days trading horizon Zhejiang Yongjin is expected to generate 1.38 times less return on investment than Shengda Mining. But when comparing it to its historical volatility, Zhejiang Yongjin Metal is 1.1 times less risky than Shengda Mining. It trades about 0.37 of its potential returns per unit of risk. Shengda Mining Co is currently generating about 0.46 of returns per unit of risk over similar time horizon. 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 Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Yongjin Metal vs. Shengda Mining Co
Performance |
| Timeline |
| Zhejiang Yongjin Metal |
| Shengda Mining |
Zhejiang Yongjin and Shengda Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Yongjin and Shengda Mining
The main advantage of trading using opposite Zhejiang Yongjin and Shengda Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yongjin 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.| Zhejiang Yongjin vs. Montage Technology Co | Zhejiang Yongjin vs. Jinyu Bio Technology Co | Zhejiang Yongjin vs. Kunshan Dongwei Technology | Zhejiang Yongjin vs. Shanghai Ziyan Foods |
| 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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