Correlation Between Shandong Mining and National Silicon
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shandong Mining Machinery and National Silicon Industry, you can compare the effects of market volatilities on Shandong Mining and National Silicon 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 National Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Mining and National Silicon.
Diversification Opportunities for Shandong Mining and National Silicon
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shandong and National is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Mining Machinery and National Silicon Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Silicon Industry 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 National Silicon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Silicon Industry has no effect on the direction of Shandong Mining i.e., Shandong Mining and National Silicon go up and down completely randomly.
Pair Corralation between Shandong Mining and National Silicon
Assuming the 90 days trading horizon Shandong Mining Machinery is expected to generate 2.37 times more return on investment than National Silicon. However, Shandong Mining is 2.37 times more volatile than National Silicon Industry. It trades about 0.37 of its potential returns per unit of risk. National Silicon Industry is currently generating about -0.18 per unit of risk. If you would invest 302.00 in Shandong Mining Machinery on September 12, 2024 and sell it today you would earn a total of 206.00 from holding Shandong Mining Machinery or generate 68.21% 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. National Silicon Industry
Performance |
| Timeline |
| Shandong Mining Machinery |
| National Silicon Industry |
Shandong Mining and National Silicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Mining and National Silicon
The main advantage of trading using opposite Shandong Mining and National Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Mining position performs unexpectedly, National Silicon 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 National Silicon will offset losses from the drop in National Silicon'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 |
| National Silicon vs. Gansu Jiu Steel | National Silicon vs. Shandong Mining Machinery | National Silicon vs. Aba Chemicals Corp | National Silicon 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |