Correlation Between Shandong Mining and Chenzhou Jingui
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By analyzing existing cross correlation between Shandong Mining Machinery and Chenzhou Jingui Silver, you can compare the effects of market volatilities on Shandong Mining and Chenzhou Jingui 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 Chenzhou Jingui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Mining and Chenzhou Jingui.
Diversification Opportunities for Shandong Mining and Chenzhou Jingui
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shandong and Chenzhou is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Mining Machinery and Chenzhou Jingui Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chenzhou Jingui Silver 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 Chenzhou Jingui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chenzhou Jingui Silver has no effect on the direction of Shandong Mining i.e., Shandong Mining and Chenzhou Jingui go up and down completely randomly.
Pair Corralation between Shandong Mining and Chenzhou Jingui
Assuming the 90 days trading horizon Shandong Mining Machinery is expected to generate 0.99 times more return on investment than Chenzhou Jingui. However, Shandong Mining Machinery is 1.01 times less risky than Chenzhou Jingui. It trades about 0.05 of its potential returns per unit of risk. Chenzhou Jingui Silver is currently generating about 0.02 per unit of risk. If you would invest 232.00 in Shandong Mining Machinery on September 3, 2024 and sell it today you would earn a total of 128.00 from holding Shandong Mining Machinery or generate 55.17% 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. Chenzhou Jingui Silver
Performance |
| Timeline |
| Shandong Mining Machinery |
| Chenzhou Jingui Silver |
Shandong Mining and Chenzhou Jingui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Mining and Chenzhou Jingui
The main advantage of trading using opposite Shandong Mining and Chenzhou Jingui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Mining position performs unexpectedly, Chenzhou Jingui 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 Chenzhou Jingui will offset losses from the drop in Chenzhou Jingui's 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 |
| Chenzhou Jingui vs. Songz Automobile Air | Chenzhou Jingui vs. Anhui Jianghuai Automobile | Chenzhou Jingui vs. Zhejiang Yayi Metal | Chenzhou Jingui vs. Xinjiang Communications Construction |
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 Stocks Directory module to find actively traded stocks across global markets.
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