Correlation Between Shandong Mining and Jiangsu Pacific
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shandong Mining Machinery and Jiangsu Pacific Quartz, you can compare the effects of market volatilities on Shandong Mining and Jiangsu Pacific 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 Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Mining and Jiangsu Pacific.
Diversification Opportunities for Shandong Mining and Jiangsu Pacific
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shandong and Jiangsu is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Mining Machinery and Jiangsu Pacific Quartz in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Pacific Quartz 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 Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Pacific Quartz has no effect on the direction of Shandong Mining i.e., Shandong Mining and Jiangsu Pacific go up and down completely randomly.
Pair Corralation between Shandong Mining and Jiangsu Pacific
Assuming the 90 days trading horizon Shandong Mining Machinery is expected to generate 0.99 times more return on investment than Jiangsu Pacific. However, Shandong Mining Machinery is 1.01 times less risky than Jiangsu Pacific. It trades about 0.12 of its potential returns per unit of risk. Jiangsu Pacific Quartz is currently generating about -0.05 per unit of risk. If you would invest 260.00 in Shandong Mining Machinery on September 3, 2024 and sell it today you would earn a total of 136.00 from holding Shandong Mining Machinery or generate 52.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Mining Machinery vs. Jiangsu Pacific Quartz
Performance |
| Timeline |
| Shandong Mining Machinery |
| Jiangsu Pacific Quartz |
Shandong Mining and Jiangsu Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Mining and Jiangsu Pacific
The main advantage of trading using opposite Shandong Mining and Jiangsu Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Mining position performs unexpectedly, Jiangsu Pacific 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 Pacific will offset losses from the drop in Jiangsu Pacific'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 |
| Jiangsu Pacific vs. Railway Signal Communication | Jiangsu Pacific vs. Chengdu Xinzhu RoadBridge | Jiangsu Pacific vs. Hainan Haiqi Transportation | Jiangsu Pacific vs. RoadMain T Co |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |