Correlation Between Shengda Mining and King Strong
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By analyzing existing cross correlation between Shengda Mining Co and King Strong New Material, you can compare the effects of market volatilities on Shengda Mining and King Strong 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 King Strong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shengda Mining and King Strong.
Diversification Opportunities for Shengda Mining and King Strong
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shengda and King is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Shengda Mining Co and King Strong New Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on King Strong New 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 King Strong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of King Strong New has no effect on the direction of Shengda Mining i.e., Shengda Mining and King Strong go up and down completely randomly.
Pair Corralation between Shengda Mining and King Strong
Assuming the 90 days trading horizon Shengda Mining Co is expected to generate 0.77 times more return on investment than King Strong. However, Shengda Mining Co is 1.3 times less risky than King Strong. It trades about 0.23 of its potential returns per unit of risk. King Strong New Material is currently generating about -0.09 per unit of risk. If you would invest 1,227 in Shengda Mining Co on December 30, 2024 and sell it today you would earn a total of 365.00 from holding Shengda Mining Co or generate 29.75% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Shengda Mining Co vs. King Strong New Material
Performance |
Timeline |
Shengda Mining |
King Strong New |
Shengda Mining and King Strong Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shengda Mining and King Strong
The main advantage of trading using opposite Shengda Mining and King Strong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shengda Mining position performs unexpectedly, King Strong 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 King Strong will offset losses from the drop in King Strong's long position.Shengda Mining vs. Shandong Publishing Media | Shengda Mining vs. Jiangsu Phoenix Publishing | Shengda Mining vs. COL Digital Publishing | Shengda Mining vs. GigaDevice SemiconductorBeiji |
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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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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