Correlation Between Shandong Mining and TS Communications
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By analyzing existing cross correlation between Shandong Mining Machinery and TS Communications Co, you can compare the effects of market volatilities on Shandong Mining and TS Communications 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 TS Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Mining and TS Communications.
Diversification Opportunities for Shandong Mining and TS Communications
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shandong and 300570 is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Mining Machinery and TS Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TS Communications 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 TS Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TS Communications has no effect on the direction of Shandong Mining i.e., Shandong Mining and TS Communications go up and down completely randomly.
Pair Corralation between Shandong Mining and TS Communications
Assuming the 90 days trading horizon Shandong Mining is expected to generate 1.86 times less return on investment than TS Communications. But when comparing it to its historical volatility, Shandong Mining Machinery is 1.72 times less risky than TS Communications. It trades about 0.08 of its potential returns per unit of risk. TS Communications Co is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,379 in TS Communications Co on September 12, 2024 and sell it today you would earn a total of 5,186 from holding TS Communications Co or generate 376.07% 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. TS Communications Co
Performance |
| Timeline |
| Shandong Mining Machinery |
| TS Communications |
Shandong Mining and TS Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Mining and TS Communications
The main advantage of trading using opposite Shandong Mining and TS Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Mining position performs unexpectedly, TS Communications 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 TS Communications will offset losses from the drop in TS Communications' 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 |
| TS Communications vs. Gansu Jiu Steel | TS Communications vs. Shandong Mining Machinery | TS Communications vs. Aba Chemicals Corp | TS Communications 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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