Correlation Between Shandong Mining and Shanghai Jin
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By analyzing existing cross correlation between Shandong Mining Machinery and Shanghai Jin Jiang, you can compare the effects of market volatilities on Shandong Mining and Shanghai Jin 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 Shanghai Jin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Mining and Shanghai Jin.
Diversification Opportunities for Shandong Mining and Shanghai Jin
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shandong and Shanghai is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Mining Machinery and Shanghai Jin Jiang in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Jin Jiang 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 Shanghai Jin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Jin Jiang has no effect on the direction of Shandong Mining i.e., Shandong Mining and Shanghai Jin go up and down completely randomly.
Pair Corralation between Shandong Mining and Shanghai Jin
Assuming the 90 days trading horizon Shandong Mining is expected to generate 1.99 times less return on investment than Shanghai Jin. In addition to that, Shandong Mining is 1.12 times more volatile than Shanghai Jin Jiang. It trades about 0.11 of its total potential returns per unit of risk. Shanghai Jin Jiang is currently generating about 0.24 per unit of volatility. If you would invest 51.00 in Shanghai Jin Jiang on August 30, 2024 and sell it today you would earn a total of 17.00 from holding Shanghai Jin Jiang or generate 33.33% 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. Shanghai Jin Jiang
Performance |
| Timeline |
| Shandong Mining Machinery |
| Shanghai Jin Jiang |
Shandong Mining and Shanghai Jin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Mining and Shanghai Jin
The main advantage of trading using opposite Shandong Mining and Shanghai Jin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Mining position performs unexpectedly, Shanghai Jin 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 Shanghai Jin will offset losses from the drop in Shanghai Jin's long position.| Shandong Mining vs. China Life Insurance | Shandong Mining vs. Cinda Securities Co | Shandong Mining vs. Piotech Inc A | Shandong Mining vs. Dongxing Sec Co |
| Shanghai Jin vs. State Grid InformationCommunication | Shanghai Jin vs. Invengo Information Technology | Shanghai Jin vs. China Publishing Media | Shanghai Jin vs. Fujian Longzhou Transportation |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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