Correlation Between Shandong Mining and Nanjing Putian
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By analyzing existing cross correlation between Shandong Mining Machinery and Nanjing Putian Telecommunications, you can compare the effects of market volatilities on Shandong Mining and Nanjing Putian 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 Nanjing Putian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Mining and Nanjing Putian.
Diversification Opportunities for Shandong Mining and Nanjing Putian
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shandong and Nanjing is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Mining Machinery and Nanjing Putian Telecommunicati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing Putian Telec 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 Nanjing Putian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing Putian Telec has no effect on the direction of Shandong Mining i.e., Shandong Mining and Nanjing Putian go up and down completely randomly.
Pair Corralation between Shandong Mining and Nanjing Putian
Assuming the 90 days trading horizon Shandong Mining Machinery is expected to generate 0.85 times more return on investment than Nanjing Putian. However, Shandong Mining Machinery is 1.17 times less risky than Nanjing Putian. It trades about 0.08 of its potential returns per unit of risk. Nanjing Putian Telecommunications is currently generating about 0.04 per unit of risk. If you would invest 218.00 in Shandong Mining Machinery on September 12, 2024 and sell it today you would earn a total of 346.00 from holding Shandong Mining Machinery or generate 158.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Mining Machinery vs. Nanjing Putian Telecommunicati
Performance |
| Timeline |
| Shandong Mining Machinery |
| Nanjing Putian Telec |
Shandong Mining and Nanjing Putian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Mining and Nanjing Putian
The main advantage of trading using opposite Shandong Mining and Nanjing Putian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Mining position performs unexpectedly, Nanjing Putian 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 Nanjing Putian will offset losses from the drop in Nanjing Putian'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 |
| Nanjing Putian vs. Gansu Jiu Steel | Nanjing Putian vs. Shandong Mining Machinery | Nanjing Putian vs. Aba Chemicals Corp | Nanjing Putian 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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