Correlation Between Shandong Gold and CSG Holding
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By analyzing existing cross correlation between Shandong Gold Mining and CSG Holding Co, you can compare the effects of market volatilities on Shandong Gold and CSG Holding 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 CSG Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Gold and CSG Holding.
Diversification Opportunities for Shandong Gold and CSG Holding
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shandong and CSG is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Gold Mining and CSG Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSG Holding 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 CSG Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSG Holding has no effect on the direction of Shandong Gold i.e., Shandong Gold and CSG Holding go up and down completely randomly.
Pair Corralation between Shandong Gold and CSG Holding
Assuming the 90 days trading horizon Shandong Gold Mining is expected to generate 1.23 times more return on investment than CSG Holding. However, Shandong Gold is 1.23 times more volatile than CSG Holding Co. It trades about 0.0 of its potential returns per unit of risk. CSG Holding Co is currently generating about -0.29 per unit of risk. If you would invest 2,509 in Shandong Gold Mining on September 14, 2024 and sell it today you would lose (6.00) from holding Shandong Gold Mining or give up 0.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Gold Mining vs. CSG Holding Co
Performance |
| Timeline |
| Shandong Gold Mining |
| CSG Holding |
Shandong Gold and CSG Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Gold and CSG Holding
The main advantage of trading using opposite Shandong Gold and CSG Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Gold position performs unexpectedly, CSG Holding 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 CSG Holding will offset losses from the drop in CSG Holding's long position.| Shandong Gold vs. Threes Company Media | Shandong Gold vs. Wasu Media Holding | Shandong Gold vs. Oppein Home Group | Shandong Gold vs. Hengdian Entertainment Co |
| CSG Holding vs. Jiahe Foods Industry | CSG Holding vs. YLZ Information Tech | CSG Holding vs. Fujian Anjoy Foods | CSG Holding vs. AVCON Information Tech |
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.
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