Correlation Between Shandong Hongchuang and Western Mining
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shandong Hongchuang Aluminum and Western Mining Co, you can compare the effects of market volatilities on Shandong Hongchuang and Western Mining 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 Shandong Hongchuang with a short position of Western Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Hongchuang and Western Mining.
Diversification Opportunities for Shandong Hongchuang and Western Mining
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shandong and Western is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Hongchuang Aluminum and Western Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Mining and Shandong Hongchuang 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 Shandong Hongchuang Aluminum are associated (or correlated) with Western Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Mining has no effect on the direction of Shandong Hongchuang i.e., Shandong Hongchuang and Western Mining go up and down completely randomly.
Pair Corralation between Shandong Hongchuang and Western Mining
Assuming the 90 days trading horizon Shandong Hongchuang Aluminum is expected to generate 1.05 times more return on investment than Western Mining. However, Shandong Hongchuang is 1.05 times more volatile than Western Mining Co. It trades about 0.08 of its potential returns per unit of risk. Western Mining Co is currently generating about 0.06 per unit of risk. If you would invest 437.00 in Shandong Hongchuang Aluminum on October 14, 2024 and sell it today you would earn a total of 530.00 from holding Shandong Hongchuang Aluminum or generate 121.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Shandong Hongchuang Aluminum vs. Western Mining Co
Performance |
| Timeline |
| Shandong Hongchuang |
| Western Mining |
Shandong Hongchuang and Western Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Hongchuang and Western Mining
The main advantage of trading using opposite Shandong Hongchuang and Western Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Hongchuang position performs unexpectedly, Western Mining 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 Western Mining will offset losses from the drop in Western Mining's long position.| Shandong Hongchuang vs. Xiandai Investment Co | Shandong Hongchuang vs. Jahen Household Products | Shandong Hongchuang vs. Cultural Investment Holdings | Shandong Hongchuang vs. Beijing Jiaman Dress |
| Western Mining vs. CITIC Metal Co | Western Mining vs. China Aluminum International | Western Mining vs. Zhejiang Yongjin Metal | Western Mining vs. Shandong Hongchuang Aluminum |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |