Correlation Between Shandong Mining and Shanghai Yaoji
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By analyzing existing cross correlation between Shandong Mining Machinery and Shanghai Yaoji Playing, you can compare the effects of market volatilities on Shandong Mining and Shanghai Yaoji 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 Shanghai Yaoji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Mining and Shanghai Yaoji.
Diversification Opportunities for Shandong Mining and Shanghai Yaoji
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shandong and Shanghai is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Mining Machinery and Shanghai Yaoji Playing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Yaoji Playing 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 Shanghai Yaoji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Yaoji Playing has no effect on the direction of Shandong Mining i.e., Shandong Mining and Shanghai Yaoji go up and down completely randomly.
Pair Corralation between Shandong Mining and Shanghai Yaoji
Assuming the 90 days trading horizon Shandong Mining is expected to generate 1.53 times less return on investment than Shanghai Yaoji. But when comparing it to its historical volatility, Shandong Mining Machinery is 1.19 times less risky than Shanghai Yaoji. It trades about 0.04 of its potential returns per unit of risk. Shanghai Yaoji Playing is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,414 in Shanghai Yaoji Playing on October 9, 2024 and sell it today you would earn a total of 1,045 from holding Shanghai Yaoji Playing or generate 73.9% 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. Shanghai Yaoji Playing
Performance |
| Timeline |
| Shandong Mining Machinery |
| Shanghai Yaoji Playing |
Shandong Mining and Shanghai Yaoji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Mining and Shanghai Yaoji
The main advantage of trading using opposite Shandong Mining and Shanghai Yaoji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Mining position performs unexpectedly, Shanghai Yaoji 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 Shanghai Yaoji will offset losses from the drop in Shanghai Yaoji's long position.| Shandong Mining vs. Sportsoul Co Ltd | Shandong Mining vs. Hainan Haiqi Transportation | Shandong Mining vs. Runjian Communication Co | Shandong Mining vs. Bank of Communications |
| Shanghai Yaoji vs. Anhui Gujing Distillery | Shanghai Yaoji vs. Tinavi Medical Technologies | Shanghai Yaoji vs. Gansu Huangtai Wine marketing | Shanghai Yaoji vs. Jiahe Foods Industry |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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