Correlation Between Guangdong Brandmax and Shandong Gold
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By analyzing existing cross correlation between Guangdong Brandmax Marketing and Shandong Gold Mining, you can compare the effects of market volatilities on Guangdong Brandmax 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 Guangdong Brandmax with a short position of Shandong Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Brandmax and Shandong Gold.
Diversification Opportunities for Guangdong Brandmax and Shandong Gold
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Guangdong and Shandong is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Brandmax Marketing 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 Guangdong Brandmax 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 Guangdong Brandmax Marketing 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 Guangdong Brandmax i.e., Guangdong Brandmax and Shandong Gold go up and down completely randomly.
Pair Corralation between Guangdong Brandmax and Shandong Gold
Assuming the 90 days trading horizon Guangdong Brandmax Marketing is expected to under-perform the Shandong Gold. In addition to that, Guangdong Brandmax is 5.54 times more volatile than Shandong Gold Mining. It trades about -0.08 of its total potential returns per unit of risk. Shandong Gold Mining is currently generating about 0.11 per unit of volatility. If you would invest 2,355 in Shandong Gold Mining on October 20, 2024 and sell it today you would earn a total of 76.00 from holding Shandong Gold Mining or generate 3.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Brandmax Marketing vs. Shandong Gold Mining
Performance |
| Timeline |
| Guangdong Brandmax |
| Shandong Gold Mining |
Guangdong Brandmax and Shandong Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Brandmax and Shandong Gold
The main advantage of trading using opposite Guangdong Brandmax and Shandong Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Brandmax 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.| Guangdong Brandmax vs. Shenyang Blue Silver | Guangdong Brandmax vs. Zijin Mining Group | Guangdong Brandmax vs. Sanbo Hospital Management | Guangdong Brandmax vs. Uroica Mining Safety |
| Shandong Gold vs. Anhui Huaheng Biotechnology | Shandong Gold vs. Jiangsu GDK Biotechnology | Shandong Gold vs. Yili Chuanning Biotechnology | Shandong Gold vs. Guangdong Marubi Biotechnology |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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