Correlation Between Shandong Mining and Tibet Huayu
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By analyzing existing cross correlation between Shandong Mining Machinery and Tibet Huayu Mining, you can compare the effects of market volatilities on Shandong Mining and Tibet Huayu 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 Tibet Huayu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Mining and Tibet Huayu.
Diversification Opportunities for Shandong Mining and Tibet Huayu
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shandong and Tibet is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Mining Machinery and Tibet Huayu Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tibet Huayu Mining 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 Tibet Huayu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tibet Huayu Mining has no effect on the direction of Shandong Mining i.e., Shandong Mining and Tibet Huayu go up and down completely randomly.
Pair Corralation between Shandong Mining and Tibet Huayu
Assuming the 90 days trading horizon Shandong Mining Machinery is expected to generate 0.96 times more return on investment than Tibet Huayu. However, Shandong Mining Machinery is 1.04 times less risky than Tibet Huayu. It trades about 0.16 of its potential returns per unit of risk. Tibet Huayu Mining is currently generating about 0.08 per unit of risk. If you would invest 261.00 in Shandong Mining Machinery on August 31, 2024 and sell it today you would earn a total of 66.00 from holding Shandong Mining Machinery or generate 25.29% 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. Tibet Huayu Mining
Performance |
| Timeline |
| Shandong Mining Machinery |
| Tibet Huayu Mining |
Shandong Mining and Tibet Huayu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Mining and Tibet Huayu
The main advantage of trading using opposite Shandong Mining and Tibet Huayu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Mining position performs unexpectedly, Tibet Huayu 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 Tibet Huayu will offset losses from the drop in Tibet Huayu's long position.| Shandong Mining vs. Cultural Investment Holdings | Shandong Mining vs. Gome Telecom Equipment | Shandong Mining vs. Bus Online Co | Shandong Mining vs. Holitech Technology Co |
| Tibet Huayu vs. Zijin Mining Group | Tibet Huayu vs. Baoshan Iron Steel | Tibet Huayu vs. Rongsheng Petrochemical Co | Tibet Huayu vs. Hoshine Silicon Ind |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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