Correlation Between Shengda Mining and Xinhua Winshare
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By analyzing existing cross correlation between Shengda Mining Co and Xinhua Winshare Publishing, you can compare the effects of market volatilities on Shengda Mining and Xinhua Winshare 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 Shengda Mining with a short position of Xinhua Winshare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shengda Mining and Xinhua Winshare.
Diversification Opportunities for Shengda Mining and Xinhua Winshare
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shengda and Xinhua is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Shengda Mining Co and Xinhua Winshare Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinhua Winshare Publ and Shengda Mining 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 Shengda Mining Co are associated (or correlated) with Xinhua Winshare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinhua Winshare Publ has no effect on the direction of Shengda Mining i.e., Shengda Mining and Xinhua Winshare go up and down completely randomly.
Pair Corralation between Shengda Mining and Xinhua Winshare
Assuming the 90 days trading horizon Shengda Mining is expected to generate 2.95 times less return on investment than Xinhua Winshare. In addition to that, Shengda Mining is 1.29 times more volatile than Xinhua Winshare Publishing. It trades about 0.01 of its total potential returns per unit of risk. Xinhua Winshare Publishing is currently generating about 0.05 per unit of volatility. If you would invest 982.00 in Xinhua Winshare Publishing on September 26, 2024 and sell it today you would earn a total of 624.00 from holding Xinhua Winshare Publishing or generate 63.54% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 99.79% |
Values | Daily Returns |
Shengda Mining Co vs. Xinhua Winshare Publishing
Performance |
Timeline |
Shengda Mining |
Xinhua Winshare Publ |
Shengda Mining and Xinhua Winshare Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shengda Mining and Xinhua Winshare
The main advantage of trading using opposite Shengda Mining and Xinhua Winshare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shengda Mining position performs unexpectedly, Xinhua Winshare 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 Xinhua Winshare will offset losses from the drop in Xinhua Winshare's long position.Shengda Mining vs. Zijin Mining Group | Shengda Mining vs. Wanhua Chemical Group | Shengda Mining vs. Baoshan Iron Steel | Shengda Mining vs. Shandong Gold Mining |
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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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