Correlation Between Shandong Mining and Fujian Newland
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shandong Mining Machinery and Fujian Newland Computer, you can compare the effects of market volatilities on Shandong Mining and Fujian Newland 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 Fujian Newland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Mining and Fujian Newland.
Diversification Opportunities for Shandong Mining and Fujian Newland
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shandong and Fujian is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Mining Machinery and Fujian Newland Computer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Newland Computer 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 Fujian Newland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Newland Computer has no effect on the direction of Shandong Mining i.e., Shandong Mining and Fujian Newland go up and down completely randomly.
Pair Corralation between Shandong Mining and Fujian Newland
Assuming the 90 days trading horizon Shandong Mining Machinery is expected to generate 1.2 times more return on investment than Fujian Newland. However, Shandong Mining is 1.2 times more volatile than Fujian Newland Computer. It trades about 0.09 of its potential returns per unit of risk. Fujian Newland Computer is currently generating about 0.04 per unit of risk. If you would invest 262.00 in Shandong Mining Machinery on September 12, 2024 and sell it today you would earn a total of 302.00 from holding Shandong Mining Machinery or generate 115.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Mining Machinery vs. Fujian Newland Computer
Performance |
| Timeline |
| Shandong Mining Machinery |
| Fujian Newland Computer |
Shandong Mining and Fujian Newland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Mining and Fujian Newland
The main advantage of trading using opposite Shandong Mining and Fujian Newland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Mining position performs unexpectedly, Fujian Newland 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 Fujian Newland will offset losses from the drop in Fujian Newland's long position.| Shandong Mining vs. Agricultural Bank of | Shandong Mining vs. Industrial and Commercial | Shandong Mining vs. Bank of China | Shandong Mining vs. PetroChina Co Ltd |
| Fujian Newland vs. Gansu Jiu Steel | Fujian Newland vs. Shandong Mining Machinery | Fujian Newland vs. Aba Chemicals Corp | Fujian Newland vs. BlueFocus Communication Group |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |