Correlation Between Shandong Gold and Sichuan Tianqi
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shandong Gold Mining and Sichuan Tianqi Lithium, you can compare the effects of market volatilities on Shandong Gold and Sichuan Tianqi 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 Sichuan Tianqi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Gold and Sichuan Tianqi.
Diversification Opportunities for Shandong Gold and Sichuan Tianqi
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shandong and Sichuan is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Gold Mining and Sichuan Tianqi Lithium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Tianqi Lithium 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 Sichuan Tianqi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Tianqi Lithium has no effect on the direction of Shandong Gold i.e., Shandong Gold and Sichuan Tianqi go up and down completely randomly.
Pair Corralation between Shandong Gold and Sichuan Tianqi
Assuming the 90 days trading horizon Shandong Gold Mining is expected to under-perform the Sichuan Tianqi. But the stock apears to be less risky and, when comparing its historical volatility, Shandong Gold Mining is 1.13 times less risky than Sichuan Tianqi. The stock trades about -0.02 of its potential returns per unit of risk. The Sichuan Tianqi Lithium is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 3,058 in Sichuan Tianqi Lithium on November 28, 2024 and sell it today you would earn a total of 244.00 from holding Sichuan Tianqi Lithium or generate 7.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Gold Mining vs. Sichuan Tianqi Lithium
Performance |
| Timeline |
| Shandong Gold Mining |
| Sichuan Tianqi Lithium |
Shandong Gold and Sichuan Tianqi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Gold and Sichuan Tianqi
The main advantage of trading using opposite Shandong Gold and Sichuan Tianqi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Gold position performs unexpectedly, Sichuan Tianqi 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 Sichuan Tianqi will offset losses from the drop in Sichuan Tianqi's long position.| Shandong Gold vs. Jiangsu Yueda Investment | Shandong Gold vs. Western Mining Co | Shandong Gold vs. Tianjin Silvery Dragon | Shandong Gold vs. Tibet Huayu Mining |
| Sichuan Tianqi vs. iSoftStone Information Technology | Sichuan Tianqi vs. Do Fluoride Chemicals Co | Sichuan Tianqi vs. Tianjin Ruixin Technology | Sichuan Tianqi vs. Beijing Kingsoft Office |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |