Correlation Between Shandong Gold and Sinomine Resource
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shandong Gold Mining and Sinomine Resource Exploration, you can compare the effects of market volatilities on Shandong Gold and Sinomine Resource 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 Sinomine Resource. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Gold and Sinomine Resource.
Diversification Opportunities for Shandong Gold and Sinomine Resource
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shandong and Sinomine is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Gold Mining and Sinomine Resource Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomine Resource 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 Sinomine Resource. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinomine Resource has no effect on the direction of Shandong Gold i.e., Shandong Gold and Sinomine Resource go up and down completely randomly.
Pair Corralation between Shandong Gold and Sinomine Resource
Assuming the 90 days trading horizon Shandong Gold is expected to generate 1.75 times less return on investment than Sinomine Resource. But when comparing it to its historical volatility, Shandong Gold Mining is 1.42 times less risky than Sinomine Resource. It trades about 0.04 of its potential returns per unit of risk. Sinomine Resource Exploration is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,861 in Sinomine Resource Exploration on October 29, 2024 and sell it today you would earn a total of 945.00 from holding Sinomine Resource Exploration or generate 33.03% 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. Sinomine Resource Exploration
Performance |
| Timeline |
| Shandong Gold Mining |
| Sinomine Resource |
Shandong Gold and Sinomine Resource Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Gold and Sinomine Resource
The main advantage of trading using opposite Shandong Gold and Sinomine Resource positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Gold position performs unexpectedly, Sinomine Resource 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 Sinomine Resource will offset losses from the drop in Sinomine Resource's long position.| Shandong Gold vs. Runjian Communication Co | Shandong Gold vs. Strait Innovation Internet | Shandong Gold vs. Zhejiang JIULI Hi tech | Shandong Gold vs. Keda Clean Energy |
| Sinomine Resource vs. Linewell Software Co | Sinomine Resource vs. Ningbo Tech Bank Co | Sinomine Resource vs. Porton Fine Chemicals | Sinomine Resource vs. Hua Xia Bank |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| CEOs Directory Screen CEOs from public companies around the world |