Correlation Between Xian International and Shandong Gold
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By analyzing existing cross correlation between Xian International Medical and Shandong Gold Mining, you can compare the effects of market volatilities on Xian International 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 Xian International with a short position of Shandong Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xian International and Shandong Gold.
Diversification Opportunities for Xian International and Shandong Gold
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xian and Shandong is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Xian International Medical 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 Xian International 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 Xian International Medical 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 Xian International i.e., Xian International and Shandong Gold go up and down completely randomly.
Pair Corralation between Xian International and Shandong Gold
Assuming the 90 days trading horizon Xian International Medical is expected to under-perform the Shandong Gold. In addition to that, Xian International is 1.26 times more volatile than Shandong Gold Mining. It trades about -0.05 of its total potential returns per unit of risk. Shandong Gold Mining is currently generating about 0.0 per unit of volatility. If you would invest 2,643 in Shandong Gold Mining on August 29, 2024 and sell it today you would lose (211.00) from holding Shandong Gold Mining or give up 7.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xian International Medical vs. Shandong Gold Mining
Performance |
| Timeline |
| Xian International |
| Shandong Gold Mining |
Xian International and Shandong Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xian International and Shandong Gold
The main advantage of trading using opposite Xian International and Shandong Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xian International 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.| Xian International vs. China Petroleum Chemical | Xian International vs. PetroChina Co Ltd | Xian International vs. China State Construction | Xian International vs. China Railway Group |
| Shandong Gold vs. Success Electronics | Shandong Gold vs. Sichuan Teway Food | Shandong Gold vs. Fuzhou Rockchip Electronics | Shandong Gold vs. Techshine Electronics 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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