Correlation Between Shandong Gold and Shandong Sinocera
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By analyzing existing cross correlation between Shandong Gold Mining and Shandong Sinocera Func, you can compare the effects of market volatilities on Shandong Gold and Shandong Sinocera 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 Shandong Sinocera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Gold and Shandong Sinocera.
Diversification Opportunities for Shandong Gold and Shandong Sinocera
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shandong and Shandong is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Gold Mining and Shandong Sinocera Func in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Sinocera Func 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 Shandong Sinocera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Sinocera Func has no effect on the direction of Shandong Gold i.e., Shandong Gold and Shandong Sinocera go up and down completely randomly.
Pair Corralation between Shandong Gold and Shandong Sinocera
Assuming the 90 days trading horizon Shandong Gold Mining is expected to under-perform the Shandong Sinocera. But the stock apears to be less risky and, when comparing its historical volatility, Shandong Gold Mining is 1.48 times less risky than Shandong Sinocera. The stock trades about -0.06 of its potential returns per unit of risk. The Shandong Sinocera Func is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,910 in Shandong Sinocera Func on August 29, 2024 and sell it today you would lose (61.00) from holding Shandong Sinocera Func or give up 3.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Gold Mining vs. Shandong Sinocera Func
Performance |
| Timeline |
| Shandong Gold Mining |
| Shandong Sinocera Func |
Shandong Gold and Shandong Sinocera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Gold and Shandong Sinocera
The main advantage of trading using opposite Shandong Gold and Shandong Sinocera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Gold position performs unexpectedly, Shandong Sinocera 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 Shandong Sinocera will offset losses from the drop in Shandong Sinocera's long position.| Shandong Gold vs. Success Electronics | Shandong Gold vs. Sichuan Teway Food | Shandong Gold vs. Fuzhou Rockchip Electronics | Shandong Gold vs. Techshine Electronics Co |
| Shandong Sinocera vs. Zijin Mining Group | Shandong Sinocera vs. Baoshan Iron Steel | Shandong Sinocera vs. Shandong Gold Mining | Shandong Sinocera 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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