Correlation Between Shandong Gold and Shenzhen Dynanonic
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By analyzing existing cross correlation between Shandong Gold Mining and Shenzhen Dynanonic Co, you can compare the effects of market volatilities on Shandong Gold and Shenzhen Dynanonic 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 Shenzhen Dynanonic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Gold and Shenzhen Dynanonic.
Diversification Opportunities for Shandong Gold and Shenzhen Dynanonic
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shandong and Shenzhen is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Gold Mining and Shenzhen Dynanonic Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Dynanonic 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 Shenzhen Dynanonic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Dynanonic has no effect on the direction of Shandong Gold i.e., Shandong Gold and Shenzhen Dynanonic go up and down completely randomly.
Pair Corralation between Shandong Gold and Shenzhen Dynanonic
Assuming the 90 days trading horizon Shandong Gold Mining is expected to generate 0.56 times more return on investment than Shenzhen Dynanonic. However, Shandong Gold Mining is 1.77 times less risky than Shenzhen Dynanonic. It trades about -0.2 of its potential returns per unit of risk. Shenzhen Dynanonic Co is currently generating about -0.39 per unit of risk. If you would invest 2,440 in Shandong Gold Mining on September 28, 2024 and sell it today you would lose (129.00) from holding Shandong Gold Mining or give up 5.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Gold Mining vs. Shenzhen Dynanonic Co
Performance |
| Timeline |
| Shandong Gold Mining |
| Shenzhen Dynanonic |
Shandong Gold and Shenzhen Dynanonic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Gold and Shenzhen Dynanonic
The main advantage of trading using opposite Shandong Gold and Shenzhen Dynanonic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Gold position performs unexpectedly, Shenzhen Dynanonic 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 Shenzhen Dynanonic will offset losses from the drop in Shenzhen Dynanonic's long position.| Shandong Gold vs. Wanhua Chemical Group | Shandong Gold vs. Rongsheng Petrochemical Co | Shandong Gold vs. Inner Mongolia BaoTou | Shandong Gold vs. Jiangxi Ganfeng Lithium |
| Shenzhen Dynanonic vs. Zijin Mining Group | Shenzhen Dynanonic vs. Wanhua Chemical Group | Shenzhen Dynanonic vs. Baoshan Iron Steel | Shenzhen Dynanonic 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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