Correlation Between Shandong Gold and Boai NKY
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By analyzing existing cross correlation between Shandong Gold Mining and Boai NKY Pharmaceuticals, you can compare the effects of market volatilities on Shandong Gold and Boai NKY 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 Boai NKY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Gold and Boai NKY.
Diversification Opportunities for Shandong Gold and Boai NKY
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shandong and Boai is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Gold Mining and Boai NKY Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boai NKY Pharmaceuticals 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 Boai NKY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boai NKY Pharmaceuticals has no effect on the direction of Shandong Gold i.e., Shandong Gold and Boai NKY go up and down completely randomly.
Pair Corralation between Shandong Gold and Boai NKY
Assuming the 90 days trading horizon Shandong Gold is expected to generate 1.45 times less return on investment than Boai NKY. But when comparing it to its historical volatility, Shandong Gold Mining is 1.9 times less risky than Boai NKY. It trades about 0.04 of its potential returns per unit of risk. Boai NKY Pharmaceuticals is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,664 in Boai NKY Pharmaceuticals on September 12, 2024 and sell it today you would earn a total of 100.00 from holding Boai NKY Pharmaceuticals or generate 6.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.58% |
| Values | Daily Returns |
Shandong Gold Mining vs. Boai NKY Pharmaceuticals
Performance |
| Timeline |
| Shandong Gold Mining |
| Boai NKY Pharmaceuticals |
Shandong Gold and Boai NKY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Gold and Boai NKY
The main advantage of trading using opposite Shandong Gold and Boai NKY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Gold position performs unexpectedly, Boai NKY 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 Boai NKY will offset losses from the drop in Boai NKY'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 |
| Boai NKY vs. Miracll Chemicals Co | Boai NKY vs. Dymatic Chemicals | Boai NKY vs. State Grid InformationCommunication | Boai NKY vs. Jilin Chemical Fibre |
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 Stocks Directory module to find actively traded stocks across global markets.
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