Correlation Between Jilin OLED and Shengda Mining
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By analyzing existing cross correlation between Jilin OLED Material and Shengda Mining Co, you can compare the effects of market volatilities on Jilin OLED 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 Jilin OLED with a short position of Shengda Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin OLED and Shengda Mining.
Diversification Opportunities for Jilin OLED and Shengda Mining
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Jilin and Shengda is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Jilin OLED Material and Shengda Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengda Mining and Jilin OLED 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 Jilin OLED Material 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 Jilin OLED i.e., Jilin OLED and Shengda Mining go up and down completely randomly.
Pair Corralation between Jilin OLED and Shengda Mining
Assuming the 90 days trading horizon Jilin OLED is expected to generate 3.93 times less return on investment than Shengda Mining. In addition to that, Jilin OLED is 1.17 times more volatile than Shengda Mining Co. It trades about 0.0 of its total potential returns per unit of risk. Shengda Mining Co is currently generating about 0.02 per unit of volatility. If you would invest 1,320 in Shengda Mining Co on November 7, 2024 and sell it today you would earn a total of 64.00 from holding Shengda Mining Co or generate 4.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Jilin OLED Material vs. Shengda Mining Co
Performance |
| Timeline |
| Jilin OLED Material |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Shengda Mining |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Jilin OLED and Shengda Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin OLED and Shengda Mining
The main advantage of trading using opposite Jilin OLED and Shengda Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin OLED 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.The idea behind Jilin OLED Material and Shengda Mining Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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