Correlation Between Huasi Agricultural and Shandong Mining
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By analyzing existing cross correlation between Huasi Agricultural Development and Shandong Mining Machinery, you can compare the effects of market volatilities on Huasi Agricultural and Shandong 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 Huasi Agricultural with a short position of Shandong Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huasi Agricultural and Shandong Mining.
Diversification Opportunities for Huasi Agricultural and Shandong Mining
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Huasi and Shandong is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Huasi Agricultural Development and Shandong Mining Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Mining Machinery and Huasi Agricultural 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 Huasi Agricultural Development are associated (or correlated) with Shandong Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Mining Machinery has no effect on the direction of Huasi Agricultural i.e., Huasi Agricultural and Shandong Mining go up and down completely randomly.
Pair Corralation between Huasi Agricultural and Shandong Mining
Assuming the 90 days trading horizon Huasi Agricultural is expected to generate 4.91 times less return on investment than Shandong Mining. In addition to that, Huasi Agricultural is 1.12 times more volatile than Shandong Mining Machinery. It trades about 0.01 of its total potential returns per unit of risk. Shandong Mining Machinery is currently generating about 0.06 per unit of volatility. If you would invest 230.00 in Shandong Mining Machinery on September 4, 2024 and sell it today you would earn a total of 166.00 from holding Shandong Mining Machinery or generate 72.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huasi Agricultural Development vs. Shandong Mining Machinery
Performance |
| Timeline |
| Huasi Agricultural |
| Shandong Mining Machinery |
Huasi Agricultural and Shandong Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huasi Agricultural and Shandong Mining
The main advantage of trading using opposite Huasi Agricultural and Shandong Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huasi Agricultural position performs unexpectedly, Shandong 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 Shandong Mining will offset losses from the drop in Shandong Mining's long position.| Huasi Agricultural vs. Industrial and Commercial | Huasi Agricultural vs. Agricultural Bank of | Huasi Agricultural vs. China Construction Bank | Huasi Agricultural vs. Bank of China |
| Shandong Mining vs. Xinjiang Communications Construction | Shandong Mining vs. Nanjing Putian Telecommunications | Shandong Mining vs. Jonjee Hi tech Industrial | Shandong Mining vs. Zoje Resources Investment |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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