Correlation Between Shandong Mining and GRINM Semiconductor
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shandong Mining Machinery and GRINM Semiconductor Materials, you can compare the effects of market volatilities on Shandong Mining and GRINM Semiconductor 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 GRINM Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Mining and GRINM Semiconductor.
Diversification Opportunities for Shandong Mining and GRINM Semiconductor
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shandong and GRINM is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Mining Machinery and GRINM Semiconductor Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRINM Semiconductor 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 GRINM Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRINM Semiconductor has no effect on the direction of Shandong Mining i.e., Shandong Mining and GRINM Semiconductor go up and down completely randomly.
Pair Corralation between Shandong Mining and GRINM Semiconductor
Assuming the 90 days trading horizon Shandong Mining Machinery is expected to generate 2.62 times more return on investment than GRINM Semiconductor. However, Shandong Mining is 2.62 times more volatile than GRINM Semiconductor Materials. It trades about 0.4 of its potential returns per unit of risk. GRINM Semiconductor Materials is currently generating about -0.13 per unit of risk. If you would invest 294.00 in Shandong Mining Machinery on September 13, 2024 and sell it today you would earn a total of 214.00 from holding Shandong Mining Machinery or generate 72.79% 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. GRINM Semiconductor Materials
Performance |
| Timeline |
| Shandong Mining Machinery |
| GRINM Semiconductor |
Shandong Mining and GRINM Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Mining and GRINM Semiconductor
The main advantage of trading using opposite Shandong Mining and GRINM Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Mining position performs unexpectedly, GRINM Semiconductor 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 GRINM Semiconductor will offset losses from the drop in GRINM Semiconductor's long position.| Shandong Mining vs. China Petroleum Chemical | Shandong Mining vs. PetroChina Co Ltd | Shandong Mining vs. China State Construction | Shandong Mining vs. China Railway Group |
| GRINM Semiconductor vs. Ye Chiu Metal | GRINM Semiconductor vs. Pengxin International Mining | GRINM Semiconductor vs. Guosheng Financial Holding | GRINM Semiconductor vs. Unisplendour Corp |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |