Correlation Between Henan Shuanghui and Shandong Gold
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By analyzing existing cross correlation between Henan Shuanghui Investment and Shandong Gold Mining, you can compare the effects of market volatilities on Henan Shuanghui 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 Henan Shuanghui with a short position of Shandong Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henan Shuanghui and Shandong Gold.
Diversification Opportunities for Henan Shuanghui and Shandong Gold
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Henan and Shandong is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Henan Shuanghui Investment 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 Henan Shuanghui 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 Henan Shuanghui Investment 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 Henan Shuanghui i.e., Henan Shuanghui and Shandong Gold go up and down completely randomly.
Pair Corralation between Henan Shuanghui and Shandong Gold
Assuming the 90 days trading horizon Henan Shuanghui Investment is expected to under-perform the Shandong Gold. But the stock apears to be less risky and, when comparing its historical volatility, Henan Shuanghui Investment is 1.4 times less risky than Shandong Gold. The stock trades about -0.01 of its potential returns per unit of risk. The Shandong Gold Mining is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,146 in Shandong Gold Mining on November 3, 2024 and sell it today you would earn a total of 287.00 from holding Shandong Gold Mining or generate 13.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Henan Shuanghui Investment vs. Shandong Gold Mining
Performance |
| Timeline |
| Henan Shuanghui Inve |
| Shandong Gold Mining |
Henan Shuanghui and Shandong Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henan Shuanghui and Shandong Gold
The main advantage of trading using opposite Henan Shuanghui and Shandong Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henan Shuanghui 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.| Henan Shuanghui vs. Sino Medical Sciences | Henan Shuanghui vs. Shenzhen Noposion Agrochemicals | Henan Shuanghui vs. Kontour Medical Technology | Henan Shuanghui vs. Xiangyu Medical Co |
| Shandong Gold vs. V V Food | Shandong Gold vs. Guocheng Mining Co | Shandong Gold vs. Jiangxi Naipu Mining | Shandong Gold vs. Shenyang Blue Silver |
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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