Correlation Between Shandong Gold and Xinxiang Chemical
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By analyzing existing cross correlation between Shandong Gold Mining and Xinxiang Chemical Fiber, you can compare the effects of market volatilities on Shandong Gold and Xinxiang Chemical 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 Xinxiang Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Gold and Xinxiang Chemical.
Diversification Opportunities for Shandong Gold and Xinxiang Chemical
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shandong and Xinxiang is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Gold Mining and Xinxiang Chemical Fiber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinxiang Chemical Fiber 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 Xinxiang Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinxiang Chemical Fiber has no effect on the direction of Shandong Gold i.e., Shandong Gold and Xinxiang Chemical go up and down completely randomly.
Pair Corralation between Shandong Gold and Xinxiang Chemical
Assuming the 90 days trading horizon Shandong Gold Mining is expected to generate 0.88 times more return on investment than Xinxiang Chemical. However, Shandong Gold Mining is 1.14 times less risky than Xinxiang Chemical. It trades about 0.22 of its potential returns per unit of risk. Xinxiang Chemical Fiber is currently generating about 0.01 per unit of risk. If you would invest 2,297 in Shandong Gold Mining on October 29, 2024 and sell it today you would earn a total of 178.00 from holding Shandong Gold Mining or generate 7.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Gold Mining vs. Xinxiang Chemical Fiber
Performance |
| Timeline |
| Shandong Gold Mining |
| Xinxiang Chemical Fiber |
Shandong Gold and Xinxiang Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Gold and Xinxiang Chemical
The main advantage of trading using opposite Shandong Gold and Xinxiang Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Gold position performs unexpectedly, Xinxiang Chemical 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 Xinxiang Chemical will offset losses from the drop in Xinxiang Chemical's long position.| Shandong Gold vs. Runjian Communication Co | Shandong Gold vs. Strait Innovation Internet | Shandong Gold vs. Zhejiang JIULI Hi tech | Shandong Gold vs. Keda Clean Energy |
| Xinxiang Chemical vs. Double Medical Technology | Xinxiang Chemical vs. Shandong Intco Medical | Xinxiang Chemical vs. Iat Automobile Technology | Xinxiang Chemical vs. Kontour Medical Technology |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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