Correlation Between Shandong Gold and Inner Mongolia
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By analyzing existing cross correlation between Shandong Gold Mining and Inner Mongolia Dazhong, 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
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shandong and Inner is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Gold Mining and Inner Mongolia Dazhong in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inner Mongolia Dazhong 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 Dazhong 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. But the stock apears to be less risky and, when comparing its historical volatility, Shandong Gold Mining is 1.2 times less risky than Inner Mongolia. The stock trades about -0.04 of its potential returns per unit of risk. The Inner Mongolia Dazhong is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,016 in Inner Mongolia Dazhong on September 3, 2024 and sell it today you would lose (52.00) from holding Inner Mongolia Dazhong or give up 5.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Gold Mining vs. Inner Mongolia Dazhong
Performance |
| Timeline |
| Shandong Gold Mining |
| Inner Mongolia Dazhong |
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. Hubeiyichang Transportation Group | Shandong Gold vs. Zhongtong Guomai Communication | Shandong Gold vs. Jilin Jlu Communication | Shandong Gold vs. Xinjiang Communications Construction |
| Inner Mongolia vs. Xiangyu Medical Co | Inner Mongolia vs. Quectel Wireless Solutions | Inner Mongolia vs. Cofoe Medical Technology | Inner Mongolia vs. Allmed Medical Products |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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