Correlation Between Shandong Gold and Inner Mongolia
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By analyzing existing cross correlation between Shandong Gold Mining and Inner Mongolia Yuan, you can compare the effects of market volatilities on Shandong Gold and Inner Mongolia 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 Inner Mongolia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Gold and Inner Mongolia.
Diversification Opportunities for Shandong Gold and Inner Mongolia
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shandong and Inner is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Gold Mining and Inner Mongolia Yuan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inner Mongolia Yuan 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 Inner Mongolia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inner Mongolia Yuan has no effect on the direction of Shandong Gold i.e., Shandong Gold and Inner Mongolia go up and down completely randomly.
Pair Corralation between Shandong Gold and Inner Mongolia
Assuming the 90 days trading horizon Shandong Gold Mining is expected to under-perform the Inner Mongolia. In addition to that, Shandong Gold is 1.17 times more volatile than Inner Mongolia Yuan. It trades about -0.39 of its total potential returns per unit of risk. Inner Mongolia Yuan is currently generating about 0.07 per unit of volatility. If you would invest 555.00 in Inner Mongolia Yuan on December 4, 2024 and sell it today you would earn a total of 8.00 from holding Inner Mongolia Yuan or generate 1.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Shandong Gold Mining vs. Inner Mongolia Yuan
Performance |
| Timeline |
| Shandong Gold Mining |
| Inner Mongolia Yuan |
Shandong Gold and Inner Mongolia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Gold and Inner Mongolia
The main advantage of trading using opposite Shandong Gold and Inner Mongolia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Gold position performs unexpectedly, Inner Mongolia 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 Inner Mongolia will offset losses from the drop in Inner Mongolia's long position.| Shandong Gold vs. Cultural Investment Holdings | Shandong Gold vs. Shenzhen Centralcon Investment | Shandong Gold vs. Hubei Geoway Investment | Shandong Gold vs. Postal Savings Bank |
| Inner Mongolia vs. Montage Technology Co | Inner Mongolia vs. Digiwin Software Co | Inner Mongolia vs. INKON Life Technology | Inner Mongolia vs. Namchow Food Group |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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