Correlation Between Shandong Gold and Sichuan Jinshi
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By analyzing existing cross correlation between Shandong Gold Mining and Sichuan Jinshi Technology, you can compare the effects of market volatilities on Shandong Gold and Sichuan Jinshi 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 Jinshi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Gold and Sichuan Jinshi.
Diversification Opportunities for Shandong Gold and Sichuan Jinshi
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shandong and Sichuan is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Gold Mining and Sichuan Jinshi Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Jinshi Technology 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 Jinshi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Jinshi Technology has no effect on the direction of Shandong Gold i.e., Shandong Gold and Sichuan Jinshi go up and down completely randomly.
Pair Corralation between Shandong Gold and Sichuan Jinshi
Assuming the 90 days trading horizon Shandong Gold Mining is expected to under-perform the Sichuan Jinshi. But the stock apears to be less risky and, when comparing its historical volatility, Shandong Gold Mining is 2.21 times less risky than Sichuan Jinshi. The stock trades about -0.38 of its potential returns per unit of risk. The Sichuan Jinshi Technology is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 632.00 in Sichuan Jinshi Technology on August 29, 2024 and sell it today you would earn a total of 77.00 from holding Sichuan Jinshi Technology or generate 12.18% 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. Sichuan Jinshi Technology
Performance |
| Timeline |
| Shandong Gold Mining |
| Sichuan Jinshi Technology |
Shandong Gold and Sichuan Jinshi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Gold and Sichuan Jinshi
The main advantage of trading using opposite Shandong Gold and Sichuan Jinshi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Gold position performs unexpectedly, Sichuan Jinshi 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 Jinshi will offset losses from the drop in Sichuan Jinshi's long position.| Shandong Gold vs. Dongguan Aohai Technology | Shandong Gold vs. Jiujiang Shanshui Technology | Shandong Gold vs. Guangzhou KingTeller Technology | Shandong Gold vs. GigaDevice SemiconductorBeiji |
| Sichuan Jinshi vs. Northking Information Technology | Sichuan Jinshi vs. ROPEOK Technology Group | Sichuan Jinshi vs. Zhejiang Construction Investment | Sichuan Jinshi vs. Tieling Newcity Investment |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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