Correlation Between Wasu Media and Shandong Gold
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By analyzing existing cross correlation between Wasu Media Holding and Shandong Gold Mining, you can compare the effects of market volatilities on Wasu Media and Shandong Gold 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 Wasu Media with a short position of Shandong Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wasu Media and Shandong Gold.
Diversification Opportunities for Wasu Media and Shandong Gold
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Wasu and Shandong is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Wasu Media Holding and Shandong Gold Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Gold Mining and Wasu Media 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 Wasu Media Holding are associated (or correlated) with Shandong Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Gold Mining has no effect on the direction of Wasu Media i.e., Wasu Media and Shandong Gold go up and down completely randomly.
Pair Corralation between Wasu Media and Shandong Gold
Assuming the 90 days trading horizon Wasu Media Holding is expected to generate 1.2 times more return on investment than Shandong Gold. However, Wasu Media is 1.2 times more volatile than Shandong Gold Mining. It trades about 0.03 of its potential returns per unit of risk. Shandong Gold Mining is currently generating about 0.02 per unit of risk. If you would invest 753.00 in Wasu Media Holding on September 14, 2024 and sell it today you would earn a total of 87.00 from holding Wasu Media Holding or generate 11.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wasu Media Holding vs. Shandong Gold Mining
Performance |
| Timeline |
| Wasu Media Holding |
| Shandong Gold Mining |
Wasu Media and Shandong Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wasu Media and Shandong Gold
The main advantage of trading using opposite Wasu Media and Shandong Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wasu Media position performs unexpectedly, Shandong Gold 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 Shandong Gold will offset losses from the drop in Shandong Gold's long position.| Wasu Media vs. Lutian Machinery Co | Wasu Media vs. PetroChina Co Ltd | Wasu Media vs. Bank of China | Wasu Media vs. China Citic Bank |
| Shandong Gold vs. Threes Company Media | Shandong Gold vs. Wasu Media Holding | Shandong Gold vs. Oppein Home Group | Shandong Gold vs. Hengdian Entertainment Co |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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