Correlation Between Shandong Gold and Guangdong Jingyi
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By analyzing existing cross correlation between Shandong Gold Mining and Guangdong Jingyi Metal, you can compare the effects of market volatilities on Shandong Gold and Guangdong Jingyi 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 Guangdong Jingyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Gold and Guangdong Jingyi.
Diversification Opportunities for Shandong Gold and Guangdong Jingyi
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Shandong and Guangdong is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Gold Mining and Guangdong Jingyi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jingyi Metal 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 Guangdong Jingyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jingyi Metal has no effect on the direction of Shandong Gold i.e., Shandong Gold and Guangdong Jingyi go up and down completely randomly.
Pair Corralation between Shandong Gold and Guangdong Jingyi
Assuming the 90 days trading horizon Shandong Gold Mining is expected to generate 0.72 times more return on investment than Guangdong Jingyi. However, Shandong Gold Mining is 1.39 times less risky than Guangdong Jingyi. It trades about 0.04 of its potential returns per unit of risk. Guangdong Jingyi Metal is currently generating about 0.01 per unit of risk. If you would invest 1,908 in Shandong Gold Mining on November 2, 2024 and sell it today you would earn a total of 525.00 from holding Shandong Gold Mining or generate 27.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Gold Mining vs. Guangdong Jingyi Metal
Performance |
| Timeline |
| Shandong Gold Mining |
| Guangdong Jingyi Metal |
Shandong Gold and Guangdong Jingyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Gold and Guangdong Jingyi
The main advantage of trading using opposite Shandong Gold and Guangdong Jingyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Gold position performs unexpectedly, Guangdong Jingyi 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 Guangdong Jingyi will offset losses from the drop in Guangdong Jingyi's long position.| Shandong Gold vs. Queclink Wireless Solutions | Shandong Gold vs. Allied Machinery Co | Shandong Gold vs. Ningbo Construction Co | Shandong Gold vs. Nanxing Furniture Machinery |
| Guangdong Jingyi vs. Sinomach Automobile Co | Guangdong Jingyi vs. Pengxin International Mining | Guangdong Jingyi vs. Fiberhome Telecommunication Technologies | Guangdong Jingyi vs. Shengda Mining Co |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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