Correlation Between FSPG Hi and Shandong Gold
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By analyzing existing cross correlation between FSPG Hi Tech Co and Shandong Gold Mining, you can compare the effects of market volatilities on FSPG Hi 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 FSPG Hi with a short position of Shandong Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of FSPG Hi and Shandong Gold.
Diversification Opportunities for FSPG Hi and Shandong Gold
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FSPG and Shandong is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding FSPG Hi Tech Co 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 FSPG Hi 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 FSPG Hi Tech Co 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 FSPG Hi i.e., FSPG Hi and Shandong Gold go up and down completely randomly.
Pair Corralation between FSPG Hi and Shandong Gold
Assuming the 90 days trading horizon FSPG Hi Tech Co is expected to generate 5.59 times more return on investment than Shandong Gold. However, FSPG Hi is 5.59 times more volatile than Shandong Gold Mining. It trades about 0.17 of its potential returns per unit of risk. Shandong Gold Mining is currently generating about 0.03 per unit of risk. If you would invest 570.00 in FSPG Hi Tech Co on September 13, 2024 and sell it today you would earn a total of 126.00 from holding FSPG Hi Tech Co or generate 22.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
FSPG Hi Tech Co vs. Shandong Gold Mining
Performance |
| Timeline |
| FSPG Hi Tech |
| Shandong Gold Mining |
FSPG Hi and Shandong Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FSPG Hi and Shandong Gold
The main advantage of trading using opposite FSPG Hi and Shandong Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FSPG Hi 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.| FSPG Hi vs. Zijin Mining Group | FSPG Hi vs. Wanhua Chemical Group | FSPG Hi vs. Baoshan Iron Steel | FSPG Hi vs. Shandong Gold Mining |
| Shandong Gold vs. Guangdong Brandmax Marketing | Shandong Gold vs. Hainan Haiqi Transportation | Shandong Gold vs. Sunny Loan Top | Shandong Gold vs. Shaanxi Meineng Clean |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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