Correlation Between Financial Street and Shandong Gold
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By analyzing existing cross correlation between Financial Street Holdings and Shandong Gold Mining, you can compare the effects of market volatilities on Financial Street 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 Financial Street with a short position of Shandong Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Financial Street and Shandong Gold.
Diversification Opportunities for Financial Street and Shandong Gold
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Financial and Shandong is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Financial Street Holdings 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 Financial Street 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 Financial Street Holdings 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 Financial Street i.e., Financial Street and Shandong Gold go up and down completely randomly.
Pair Corralation between Financial Street and Shandong Gold
Assuming the 90 days trading horizon Financial Street Holdings is expected to under-perform the Shandong Gold. In addition to that, Financial Street is 1.34 times more volatile than Shandong Gold Mining. It trades about -0.03 of its total potential returns per unit of risk. Shandong Gold Mining is currently generating about 0.03 per unit of volatility. If you would invest 1,980 in Shandong Gold Mining on October 16, 2024 and sell it today you would earn a total of 474.00 from holding Shandong Gold Mining or generate 23.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Financial Street Holdings vs. Shandong Gold Mining
Performance |
| Timeline |
| Financial Street Holdings |
| Shandong Gold Mining |
Financial Street and Shandong Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Financial Street and Shandong Gold
The main advantage of trading using opposite Financial Street and Shandong Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Financial Street 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.| Financial Street vs. Zoje Resources Investment | Financial Street vs. Postal Savings Bank | Financial Street vs. Zhongrun Resources Investment | Financial Street vs. Hunan Investment Group |
| Shandong Gold vs. Lecron Energy Saving | Shandong Gold vs. JuneYao Dairy Co | Shandong Gold vs. Shandong Longda Meat | Shandong Gold vs. Financial Street Holdings |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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