Correlation Between Shandong Mining and Tianjin Hi
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shandong Mining Machinery and Tianjin Hi Tech Development, you can compare the effects of market volatilities on Shandong Mining and Tianjin Hi 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 Tianjin Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Mining and Tianjin Hi.
Diversification Opportunities for Shandong Mining and Tianjin Hi
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shandong and Tianjin is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Mining Machinery and Tianjin Hi Tech Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Hi 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 Tianjin Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Hi Tech has no effect on the direction of Shandong Mining i.e., Shandong Mining and Tianjin Hi go up and down completely randomly.
Pair Corralation between Shandong Mining and Tianjin Hi
Assuming the 90 days trading horizon Shandong Mining Machinery is expected to generate 1.09 times more return on investment than Tianjin Hi. However, Shandong Mining is 1.09 times more volatile than Tianjin Hi Tech Development. It trades about 0.08 of its potential returns per unit of risk. Tianjin Hi Tech Development is currently generating about 0.01 per unit of risk. If you would invest 272.00 in Shandong Mining Machinery on September 12, 2024 and sell it today you would earn a total of 292.00 from holding Shandong Mining Machinery or generate 107.35% 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. Tianjin Hi Tech Development
Performance |
| Timeline |
| Shandong Mining Machinery |
| Tianjin Hi Tech |
Shandong Mining and Tianjin Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Mining and Tianjin Hi
The main advantage of trading using opposite Shandong Mining and Tianjin Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Mining position performs unexpectedly, Tianjin Hi 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 Tianjin Hi will offset losses from the drop in Tianjin Hi'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 |
| Tianjin Hi vs. Gansu Jiu Steel | Tianjin Hi vs. Shandong Mining Machinery | Tianjin Hi vs. Aba Chemicals Corp | Tianjin Hi 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |