Correlation Between Shandong Mining and Jiangsu Jinling
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By analyzing existing cross correlation between Shandong Mining Machinery and Jiangsu Jinling Sports, you can compare the effects of market volatilities on Shandong Mining and Jiangsu Jinling 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 Jiangsu Jinling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Mining and Jiangsu Jinling.
Diversification Opportunities for Shandong Mining and Jiangsu Jinling
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shandong and Jiangsu is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Mining Machinery and Jiangsu Jinling Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Jinling Sports 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 Jiangsu Jinling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Jinling Sports has no effect on the direction of Shandong Mining i.e., Shandong Mining and Jiangsu Jinling go up and down completely randomly.
Pair Corralation between Shandong Mining and Jiangsu Jinling
Assuming the 90 days trading horizon Shandong Mining Machinery is expected to generate 1.47 times more return on investment than Jiangsu Jinling. However, Shandong Mining is 1.47 times more volatile than Jiangsu Jinling Sports. It trades about 0.23 of its potential returns per unit of risk. Jiangsu Jinling Sports is currently generating about 0.05 per unit of risk. If you would invest 274.00 in Shandong Mining Machinery on September 4, 2024 and sell it today you would earn a total of 122.00 from holding Shandong Mining Machinery or generate 44.53% 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. Jiangsu Jinling Sports
Performance |
| Timeline |
| Shandong Mining Machinery |
| Jiangsu Jinling Sports |
Shandong Mining and Jiangsu Jinling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Mining and Jiangsu Jinling
The main advantage of trading using opposite Shandong Mining and Jiangsu Jinling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Mining position performs unexpectedly, Jiangsu Jinling 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 Jiangsu Jinling will offset losses from the drop in Jiangsu Jinling's long position.| Shandong Mining vs. Xinjiang Communications Construction | Shandong Mining vs. Nanjing Putian Telecommunications | Shandong Mining vs. Jonjee Hi tech Industrial | Shandong Mining vs. Zoje Resources Investment |
| Jiangsu Jinling vs. BeiGene | Jiangsu Jinling vs. Kweichow Moutai Co | Jiangsu Jinling vs. Beijing Roborock Technology | Jiangsu Jinling vs. G bits Network Technology |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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