Correlation Between Shandong Gold and Anhui Huilong
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By analyzing existing cross correlation between Shandong Gold Mining and Anhui Huilong Agricultural, you can compare the effects of market volatilities on Shandong Gold and Anhui Huilong 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 Anhui Huilong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Gold and Anhui Huilong.
Diversification Opportunities for Shandong Gold and Anhui Huilong
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shandong and Anhui is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Gold Mining and Anhui Huilong Agricultural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Huilong Agricu 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 Anhui Huilong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Huilong Agricu has no effect on the direction of Shandong Gold i.e., Shandong Gold and Anhui Huilong go up and down completely randomly.
Pair Corralation between Shandong Gold and Anhui Huilong
Assuming the 90 days trading horizon Shandong Gold Mining is expected to under-perform the Anhui Huilong. But the stock apears to be less risky and, when comparing its historical volatility, Shandong Gold Mining is 3.31 times less risky than Anhui Huilong. The stock trades about -0.32 of its potential returns per unit of risk. The Anhui Huilong Agricultural is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 530.00 in Anhui Huilong Agricultural on August 26, 2024 and sell it today you would earn a total of 121.00 from holding Anhui Huilong Agricultural or generate 22.83% 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. Anhui Huilong Agricultural
Performance |
| Timeline |
| Shandong Gold Mining |
| Anhui Huilong Agricu |
Shandong Gold and Anhui Huilong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Gold and Anhui Huilong
The main advantage of trading using opposite Shandong Gold and Anhui Huilong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Gold position performs unexpectedly, Anhui Huilong 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 Anhui Huilong will offset losses from the drop in Anhui Huilong's long position.| Shandong Gold vs. Suofeiya Home Collection | Shandong Gold vs. Ping An Insurance | Shandong Gold vs. DO Home Collection | Shandong Gold vs. Jiangsu Xinri E Vehicle |
| Anhui Huilong vs. Zijin Mining Group | Anhui Huilong vs. Wanhua Chemical Group | Anhui Huilong vs. Baoshan Iron Steel | Anhui Huilong vs. Shandong Gold Mining |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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