Correlation Between Shandong Gold and FSPG Hi
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By analyzing existing cross correlation between Shandong Gold Mining and FSPG Hi Tech Co, you can compare the effects of market volatilities on Shandong Gold and FSPG Hi 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 FSPG Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Gold and FSPG Hi.
Diversification Opportunities for Shandong Gold and FSPG Hi
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shandong and FSPG is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Gold Mining and FSPG Hi Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FSPG Hi Tech 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 FSPG Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FSPG Hi Tech has no effect on the direction of Shandong Gold i.e., Shandong Gold and FSPG Hi go up and down completely randomly.
Pair Corralation between Shandong Gold and FSPG Hi
Assuming the 90 days trading horizon Shandong Gold Mining is expected to under-perform the FSPG Hi. But the stock apears to be less risky and, when comparing its historical volatility, Shandong Gold Mining is 4.77 times less risky than FSPG Hi. The stock trades about -0.39 of its potential returns per unit of risk. The FSPG Hi Tech Co is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 524.00 in FSPG Hi Tech Co on August 29, 2024 and sell it today you would earn a total of 295.00 from holding FSPG Hi Tech Co or generate 56.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Shandong Gold Mining vs. FSPG Hi Tech Co
Performance |
| Timeline |
| Shandong Gold Mining |
| FSPG Hi Tech |
Shandong Gold and FSPG Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Gold and FSPG Hi
The main advantage of trading using opposite Shandong Gold and FSPG Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Gold position performs unexpectedly, FSPG Hi 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 FSPG Hi will offset losses from the drop in FSPG Hi'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 |
| FSPG Hi vs. Jiangsu Financial Leasing | FSPG Hi vs. Industrial Bank Co | FSPG Hi vs. Harvest Fund Management | FSPG Hi vs. AVIC Fund Management |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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