Correlation Between Shandong Mining and Central Plains
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shandong Mining Machinery and Central Plains Environment, you can compare the effects of market volatilities on Shandong Mining and Central Plains 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 Mining with a short position of Central Plains. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Mining and Central Plains.
Diversification Opportunities for Shandong Mining and Central Plains
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shandong and Central is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Mining Machinery and Central Plains Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Central Plains Envir and Shandong Mining 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 Mining Machinery are associated (or correlated) with Central Plains. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Central Plains Envir has no effect on the direction of Shandong Mining i.e., Shandong Mining and Central Plains go up and down completely randomly.
Pair Corralation between Shandong Mining and Central Plains
Assuming the 90 days trading horizon Shandong Mining Machinery is expected to generate 1.92 times more return on investment than Central Plains. However, Shandong Mining is 1.92 times more volatile than Central Plains Environment. It trades about 0.23 of its potential returns per unit of risk. Central Plains Environment is currently generating about -0.01 per unit of risk. If you would invest 271.00 in Shandong Mining Machinery on August 31, 2024 and sell it today you would earn a total of 56.00 from holding Shandong Mining Machinery or generate 20.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Mining Machinery vs. Central Plains Environment
Performance |
| Timeline |
| Shandong Mining Machinery |
| Central Plains Envir |
Shandong Mining and Central Plains Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Mining and Central Plains
The main advantage of trading using opposite Shandong Mining and Central Plains positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Mining position performs unexpectedly, Central Plains 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 Central Plains will offset losses from the drop in Central Plains' long position.| Shandong Mining vs. Cultural Investment Holdings | Shandong Mining vs. Gome Telecom Equipment | Shandong Mining vs. Bus Online Co | Shandong Mining vs. Holitech Technology Co |
| Central Plains vs. Cultural Investment Holdings | Central Plains vs. Gome Telecom Equipment | Central Plains vs. Bus Online Co | Central Plains vs. Holitech Technology 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |