Correlation Between Malion New and Shandong Gold
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By analyzing existing cross correlation between Malion New Materials and Shandong Gold Mining, you can compare the effects of market volatilities on Malion New 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 Malion New with a short position of Shandong Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Malion New and Shandong Gold.
Diversification Opportunities for Malion New and Shandong Gold
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Malion and Shandong is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Malion New Materials 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 Malion New 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 Malion New Materials 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 Malion New i.e., Malion New and Shandong Gold go up and down completely randomly.
Pair Corralation between Malion New and Shandong Gold
Assuming the 90 days trading horizon Malion New Materials is expected to generate 4.21 times more return on investment than Shandong Gold. However, Malion New is 4.21 times more volatile than Shandong Gold Mining. It trades about 0.19 of its potential returns per unit of risk. Shandong Gold Mining is currently generating about -0.25 per unit of risk. If you would invest 815.00 in Malion New Materials on September 1, 2024 and sell it today you would earn a total of 189.00 from holding Malion New Materials or generate 23.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Malion New Materials vs. Shandong Gold Mining
Performance |
| Timeline |
| Malion New Materials |
| Shandong Gold Mining |
Malion New and Shandong Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Malion New and Shandong Gold
The main advantage of trading using opposite Malion New and Shandong Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Malion New 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.| Malion New vs. Leaguer Shenzhen MicroElectronics | Malion New vs. StarPower Semiconductor | Malion New vs. Integrated Electronic Systems | Malion New vs. Epoxy Base Electronic |
| Shandong Gold vs. Dhc Software Co | Shandong Gold vs. Western Superconducting Tech | Shandong Gold vs. Guangdong Jingyi Metal | Shandong Gold vs. Guocheng Mining 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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