Correlation Between Shandong Gold and Puyang Huicheng
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By analyzing existing cross correlation between Shandong Gold Mining and Puyang Huicheng Electronic, you can compare the effects of market volatilities on Shandong Gold and Puyang Huicheng 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 Puyang Huicheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Gold and Puyang Huicheng.
Diversification Opportunities for Shandong Gold and Puyang Huicheng
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Shandong and Puyang is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Gold Mining and Puyang Huicheng Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Puyang Huicheng Elec 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 Puyang Huicheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Puyang Huicheng Elec has no effect on the direction of Shandong Gold i.e., Shandong Gold and Puyang Huicheng go up and down completely randomly.
Pair Corralation between Shandong Gold and Puyang Huicheng
Assuming the 90 days trading horizon Shandong Gold Mining is expected to generate 0.67 times more return on investment than Puyang Huicheng. However, Shandong Gold Mining is 1.48 times less risky than Puyang Huicheng. It trades about 0.08 of its potential returns per unit of risk. Puyang Huicheng Electronic is currently generating about -0.22 per unit of risk. If you would invest 2,344 in Shandong Gold Mining on October 23, 2024 and sell it today you would earn a total of 52.00 from holding Shandong Gold Mining or generate 2.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Gold Mining vs. Puyang Huicheng Electronic
Performance |
| Timeline |
| Shandong Gold Mining |
| Puyang Huicheng Elec |
Shandong Gold and Puyang Huicheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Gold and Puyang Huicheng
The main advantage of trading using opposite Shandong Gold and Puyang Huicheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Gold position performs unexpectedly, Puyang Huicheng 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 Puyang Huicheng will offset losses from the drop in Puyang Huicheng's long position.| Shandong Gold vs. Henan Shuanghui Investment | Shandong Gold vs. Xiandai Investment Co | Shandong Gold vs. Metro Investment Development | Shandong Gold vs. Shenzhen Centralcon Investment |
| Puyang Huicheng vs. Zijin Mining Group | Puyang Huicheng vs. Wanhua Chemical Group | Puyang Huicheng vs. Baoshan Iron Steel | Puyang Huicheng 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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