Correlation Between Shandong Gold and Success Electronics
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By analyzing existing cross correlation between Shandong Gold Mining and Success Electronics, you can compare the effects of market volatilities on Shandong Gold and Success Electronics 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 Success Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Gold and Success Electronics.
Diversification Opportunities for Shandong Gold and Success Electronics
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shandong and Success is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Gold Mining and Success Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Success Electronics 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 Success Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Success Electronics has no effect on the direction of Shandong Gold i.e., Shandong Gold and Success Electronics go up and down completely randomly.
Pair Corralation between Shandong Gold and Success Electronics
Assuming the 90 days trading horizon Shandong Gold Mining is expected to generate 0.68 times more return on investment than Success Electronics. However, Shandong Gold Mining is 1.47 times less risky than Success Electronics. It trades about 0.01 of its potential returns per unit of risk. Success Electronics is currently generating about -0.04 per unit of risk. If you would invest 2,462 in Shandong Gold Mining on August 31, 2024 and sell it today you would lose (42.00) from holding Shandong Gold Mining or give up 1.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.72% |
| Values | Daily Returns |
Shandong Gold Mining vs. Success Electronics
Performance |
| Timeline |
| Shandong Gold Mining |
| Success Electronics |
Shandong Gold and Success Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Gold and Success Electronics
The main advantage of trading using opposite Shandong Gold and Success Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Gold position performs unexpectedly, Success Electronics 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 Success Electronics will offset losses from the drop in Success Electronics' long position.| Shandong Gold vs. Qijing Machinery | Shandong Gold vs. Rising Nonferrous Metals | Shandong Gold vs. Henzhen Zhaowei Machinery | Shandong Gold vs. Gifore Agricultural Machinery |
| Success Electronics vs. Kweichow Moutai Co | Success Electronics vs. NAURA Technology Group | Success Electronics vs. APT Medical | Success Electronics vs. Contemporary Amperex 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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