Correlation Between Shandong Gold and Yingde Greatchem
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By analyzing existing cross correlation between Shandong Gold Mining and Yingde Greatchem Chemicals, you can compare the effects of market volatilities on Shandong Gold and Yingde Greatchem 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 Yingde Greatchem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Gold and Yingde Greatchem.
Diversification Opportunities for Shandong Gold and Yingde Greatchem
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shandong and Yingde is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Gold Mining and Yingde Greatchem Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yingde Greatchem Che 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 Yingde Greatchem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yingde Greatchem Che has no effect on the direction of Shandong Gold i.e., Shandong Gold and Yingde Greatchem go up and down completely randomly.
Pair Corralation between Shandong Gold and Yingde Greatchem
Assuming the 90 days trading horizon Shandong Gold Mining is expected to generate 0.85 times more return on investment than Yingde Greatchem. However, Shandong Gold Mining is 1.18 times less risky than Yingde Greatchem. It trades about 0.16 of its potential returns per unit of risk. Yingde Greatchem Chemicals is currently generating about 0.11 per unit of risk. If you would invest 2,315 in Shandong Gold Mining on November 2, 2024 and sell it today you would earn a total of 118.00 from holding Shandong Gold Mining or generate 5.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Gold Mining vs. Yingde Greatchem Chemicals
Performance |
| Timeline |
| Shandong Gold Mining |
| Yingde Greatchem Che |
Shandong Gold and Yingde Greatchem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Gold and Yingde Greatchem
The main advantage of trading using opposite Shandong Gold and Yingde Greatchem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Gold position performs unexpectedly, Yingde Greatchem 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 Yingde Greatchem will offset losses from the drop in Yingde Greatchem's long position.| Shandong Gold vs. Sharetronic Data Technology | Shandong Gold vs. COL Digital Publishing | Shandong Gold vs. Sinofibers Technology Co | Shandong Gold vs. Changjiang Publishing Media |
| Yingde Greatchem vs. Zijin Mining Group | Yingde Greatchem vs. Wanhua Chemical Group | Yingde Greatchem vs. Baoshan Iron Steel | Yingde Greatchem 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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