Correlation Between Shandong Mining and YLZ Information
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By analyzing existing cross correlation between Shandong Mining Machinery and YLZ Information Tech, you can compare the effects of market volatilities on Shandong Mining and YLZ Information 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 YLZ Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Mining and YLZ Information.
Diversification Opportunities for Shandong Mining and YLZ Information
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shandong and YLZ is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Mining Machinery and YLZ Information Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YLZ Information Tech 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 YLZ Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YLZ Information Tech has no effect on the direction of Shandong Mining i.e., Shandong Mining and YLZ Information go up and down completely randomly.
Pair Corralation between Shandong Mining and YLZ Information
Assuming the 90 days trading horizon Shandong Mining Machinery is expected to generate 0.78 times more return on investment than YLZ Information. However, Shandong Mining Machinery is 1.29 times less risky than YLZ Information. It trades about 0.1 of its potential returns per unit of risk. YLZ Information Tech is currently generating about -0.03 per unit of risk. If you would invest 271.00 in Shandong Mining Machinery on September 12, 2024 and sell it today you would earn a total of 293.00 from holding Shandong Mining Machinery or generate 108.12% 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. YLZ Information Tech
Performance |
| Timeline |
| Shandong Mining Machinery |
| YLZ Information Tech |
Shandong Mining and YLZ Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Mining and YLZ Information
The main advantage of trading using opposite Shandong Mining and YLZ Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Mining position performs unexpectedly, YLZ Information 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 YLZ Information will offset losses from the drop in YLZ Information'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 |
| YLZ Information vs. Gansu Jiu Steel | YLZ Information vs. Shandong Mining Machinery | YLZ Information vs. Aba Chemicals Corp | YLZ Information 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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