Correlation Between Shandong Gold and Jiangxi Selon
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By analyzing existing cross correlation between Shandong Gold Mining and Jiangxi Selon Industrial, you can compare the effects of market volatilities on Shandong Gold and Jiangxi Selon 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 Jiangxi Selon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Gold and Jiangxi Selon.
Diversification Opportunities for Shandong Gold and Jiangxi Selon
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shandong and Jiangxi is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Gold Mining and Jiangxi Selon Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Selon 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 Jiangxi Selon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Selon Industrial has no effect on the direction of Shandong Gold i.e., Shandong Gold and Jiangxi Selon go up and down completely randomly.
Pair Corralation between Shandong Gold and Jiangxi Selon
Assuming the 90 days trading horizon Shandong Gold Mining is expected to generate 0.56 times more return on investment than Jiangxi Selon. However, Shandong Gold Mining is 1.79 times less risky than Jiangxi Selon. It trades about 0.02 of its potential returns per unit of risk. Jiangxi Selon Industrial is currently generating about 0.01 per unit of risk. If you would invest 2,370 in Shandong Gold Mining on September 12, 2024 and sell it today you would earn a total of 99.00 from holding Shandong Gold Mining or generate 4.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Gold Mining vs. Jiangxi Selon Industrial
Performance |
| Timeline |
| Shandong Gold Mining |
| Jiangxi Selon Industrial |
Shandong Gold and Jiangxi Selon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Gold and Jiangxi Selon
The main advantage of trading using opposite Shandong Gold and Jiangxi Selon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Gold position performs unexpectedly, Jiangxi Selon 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 Jiangxi Selon will offset losses from the drop in Jiangxi Selon's long position.| Shandong Gold vs. Heilongjiang Publishing Media | Shandong Gold vs. Suofeiya Home Collection | Shandong Gold vs. Shuhua Sports Co | Shandong Gold vs. Lander Sports Development |
| Jiangxi Selon vs. Zijin Mining Group | Jiangxi Selon vs. Wanhua Chemical Group | Jiangxi Selon vs. Baoshan Iron Steel | Jiangxi Selon vs. Rongsheng Petrochemical 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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