Correlation Between Suofeiya Home and Shandong Gold
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By analyzing existing cross correlation between Suofeiya Home Collection and Shandong Gold Mining, you can compare the effects of market volatilities on Suofeiya Home and Shandong Gold 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 Suofeiya Home with a short position of Shandong Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suofeiya Home and Shandong Gold.
Diversification Opportunities for Suofeiya Home and Shandong Gold
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Suofeiya and Shandong is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Suofeiya Home Collection and Shandong Gold Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Gold Mining and Suofeiya Home 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 Suofeiya Home Collection are associated (or correlated) with Shandong Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Gold Mining has no effect on the direction of Suofeiya Home i.e., Suofeiya Home and Shandong Gold go up and down completely randomly.
Pair Corralation between Suofeiya Home and Shandong Gold
Assuming the 90 days trading horizon Suofeiya Home Collection is expected to under-perform the Shandong Gold. In addition to that, Suofeiya Home is 1.95 times more volatile than Shandong Gold Mining. It trades about -0.36 of its total potential returns per unit of risk. Shandong Gold Mining is currently generating about -0.32 per unit of volatility. If you would invest 2,740 in Shandong Gold Mining on August 26, 2024 and sell it today you would lose (217.00) from holding Shandong Gold Mining or give up 7.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suofeiya Home Collection vs. Shandong Gold Mining
Performance |
| Timeline |
| Suofeiya Home Collection |
| Shandong Gold Mining |
Suofeiya Home and Shandong Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suofeiya Home and Shandong Gold
The main advantage of trading using opposite Suofeiya Home and Shandong Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suofeiya Home position performs unexpectedly, Shandong Gold 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 Shandong Gold will offset losses from the drop in Shandong Gold's long position.| Suofeiya Home vs. China Petroleum Chemical | Suofeiya Home vs. PetroChina Co Ltd | Suofeiya Home vs. China State Construction | Suofeiya Home vs. China Railway Group |
| Shandong Gold vs. Suofeiya Home Collection | Shandong Gold vs. Ping An Insurance | Shandong Gold vs. DO Home Collection | Shandong Gold vs. Jiangsu Xinri E Vehicle |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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