Correlation Between Shandong Gold and North Huajin
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By analyzing existing cross correlation between Shandong Gold Mining and North Huajin Chemical, you can compare the effects of market volatilities on Shandong Gold and North Huajin 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 Gold with a short position of North Huajin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Gold and North Huajin.
Diversification Opportunities for Shandong Gold and North Huajin
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shandong and North is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Gold Mining and North Huajin Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on North Huajin Chemical and Shandong Gold 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 Gold Mining are associated (or correlated) with North Huajin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of North Huajin Chemical has no effect on the direction of Shandong Gold i.e., Shandong Gold and North Huajin go up and down completely randomly.
Pair Corralation between Shandong Gold and North Huajin
Assuming the 90 days trading horizon Shandong Gold Mining is expected to under-perform the North Huajin. But the stock apears to be less risky and, when comparing its historical volatility, Shandong Gold Mining is 1.96 times less risky than North Huajin. The stock trades about -0.16 of its potential returns per unit of risk. The North Huajin Chemical is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 441.00 in North Huajin Chemical on August 28, 2024 and sell it today you would earn a total of 82.00 from holding North Huajin Chemical or generate 18.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Gold Mining vs. North Huajin Chemical
Performance |
| Timeline |
| Shandong Gold Mining |
| North Huajin Chemical |
Shandong Gold and North Huajin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Gold and North Huajin
The main advantage of trading using opposite Shandong Gold and North Huajin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Gold position performs unexpectedly, North Huajin 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 North Huajin will offset losses from the drop in North Huajin's long position.| Shandong Gold vs. Success Electronics | Shandong Gold vs. Sichuan Teway Food | Shandong Gold vs. Fuzhou Rockchip Electronics | Shandong Gold vs. Techshine Electronics Co |
| North Huajin vs. Zijin Mining Group | North Huajin vs. Wanhua Chemical Group | North Huajin vs. Baoshan Iron Steel | North Huajin vs. Shandong Gold Mining |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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