Correlation Between Shandong Gold and Elite Color
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By analyzing existing cross correlation between Shandong Gold Mining and Elite Color Environmental, you can compare the effects of market volatilities on Shandong Gold and Elite Color 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 Elite Color. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Gold and Elite Color.
Diversification Opportunities for Shandong Gold and Elite Color
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shandong and Elite is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Gold Mining and Elite Color Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elite Color Environmental 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 Elite Color. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elite Color Environmental has no effect on the direction of Shandong Gold i.e., Shandong Gold and Elite Color go up and down completely randomly.
Pair Corralation between Shandong Gold and Elite Color
Assuming the 90 days trading horizon Shandong Gold Mining is expected to generate 0.92 times more return on investment than Elite Color. However, Shandong Gold Mining is 1.09 times less risky than Elite Color. It trades about 0.03 of its potential returns per unit of risk. Elite Color Environmental is currently generating about 0.0 per unit of risk. If you would invest 2,088 in Shandong Gold Mining on August 25, 2024 and sell it today you would earn a total of 435.00 from holding Shandong Gold Mining or generate 20.83% 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. Elite Color Environmental
Performance |
| Timeline |
| Shandong Gold Mining |
| Elite Color Environmental |
Shandong Gold and Elite Color Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Gold and Elite Color
The main advantage of trading using opposite Shandong Gold and Elite Color positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Gold position performs unexpectedly, Elite Color 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 Elite Color will offset losses from the drop in Elite Color's long position.| Shandong Gold vs. Xian International Medical | Shandong Gold vs. Lutian Machinery Co | Shandong Gold vs. Shaanxi Construction Machinery | Shandong Gold vs. Ningbo Construction Co |
| Elite Color vs. Zijin Mining Group | Elite Color vs. Wanhua Chemical Group | Elite Color vs. Baoshan Iron Steel | Elite Color 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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