Correlation Between Shandong Gold and Anhui Jinhe
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By analyzing existing cross correlation between Shandong Gold Mining and Anhui Jinhe Industrial, you can compare the effects of market volatilities on Shandong Gold and Anhui Jinhe 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 Jinhe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Gold and Anhui Jinhe.
Diversification Opportunities for Shandong Gold and Anhui Jinhe
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shandong and Anhui is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Gold Mining and Anhui Jinhe Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Jinhe Industrial 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 Jinhe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Jinhe Industrial has no effect on the direction of Shandong Gold i.e., Shandong Gold and Anhui Jinhe go up and down completely randomly.
Pair Corralation between Shandong Gold and Anhui Jinhe
Assuming the 90 days trading horizon Shandong Gold Mining is expected to under-perform the Anhui Jinhe. But the stock apears to be less risky and, when comparing its historical volatility, Shandong Gold Mining is 1.85 times less risky than Anhui Jinhe. The stock trades about -0.36 of its potential returns per unit of risk. The Anhui Jinhe Industrial is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,369 in Anhui Jinhe Industrial on August 28, 2024 and sell it today you would earn a total of 71.00 from holding Anhui Jinhe Industrial or generate 3.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Gold Mining vs. Anhui Jinhe Industrial
Performance |
| Timeline |
| Shandong Gold Mining |
| Anhui Jinhe Industrial |
Shandong Gold and Anhui Jinhe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Gold and Anhui Jinhe
The main advantage of trading using opposite Shandong Gold and Anhui Jinhe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Gold position performs unexpectedly, Anhui Jinhe 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 Jinhe will offset losses from the drop in Anhui Jinhe's long position.| Shandong Gold vs. Luyin Investment Group | Shandong Gold vs. Sichuan Fulin Transportation | Shandong Gold vs. Zhejiang Kingland Pipeline | Shandong Gold vs. Zoje Resources Investment |
| Anhui Jinhe vs. Zijin Mining Group | Anhui Jinhe vs. Wanhua Chemical Group | Anhui Jinhe vs. Baoshan Iron Steel | Anhui Jinhe 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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