Correlation Between Shandong Mining and Shaanxi Meineng
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shandong Mining Machinery and Shaanxi Meineng Clean, you can compare the effects of market volatilities on Shandong Mining and Shaanxi Meineng 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 Shaanxi Meineng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Mining and Shaanxi Meineng.
Diversification Opportunities for Shandong Mining and Shaanxi Meineng
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shandong and Shaanxi is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Mining Machinery and Shaanxi Meineng Clean in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Meineng Clean 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 Shaanxi Meineng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Meineng Clean has no effect on the direction of Shandong Mining i.e., Shandong Mining and Shaanxi Meineng go up and down completely randomly.
Pair Corralation between Shandong Mining and Shaanxi Meineng
Assuming the 90 days trading horizon Shandong Mining Machinery is expected to generate 1.8 times more return on investment than Shaanxi Meineng. However, Shandong Mining is 1.8 times more volatile than Shaanxi Meineng Clean. It trades about 0.17 of its potential returns per unit of risk. Shaanxi Meineng Clean is currently generating about 0.07 per unit of risk. If you would invest 252.00 in Shandong Mining Machinery on September 13, 2024 and sell it today you would earn a total of 256.00 from holding Shandong Mining Machinery or generate 101.59% 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. Shaanxi Meineng Clean
Performance |
| Timeline |
| Shandong Mining Machinery |
| Shaanxi Meineng Clean |
Shandong Mining and Shaanxi Meineng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Mining and Shaanxi Meineng
The main advantage of trading using opposite Shandong Mining and Shaanxi Meineng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Mining position performs unexpectedly, Shaanxi Meineng 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 Shaanxi Meineng will offset losses from the drop in Shaanxi Meineng's long position.| Shandong Mining vs. China Petroleum Chemical | Shandong Mining vs. PetroChina Co Ltd | Shandong Mining vs. China State Construction | Shandong Mining vs. China Railway Group |
| Shaanxi Meineng vs. Innovative Medical Management | Shaanxi Meineng vs. Cowealth Medical China | Shaanxi Meineng vs. Zhongzhu Medical Holdings | Shaanxi Meineng vs. Touchstone International Medical |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |