Correlation Between Shandong Gold and Shengtak New
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By analyzing existing cross correlation between Shandong Gold Mining and Shengtak New Material, you can compare the effects of market volatilities on Shandong Gold and Shengtak New 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 Shengtak New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Gold and Shengtak New.
Diversification Opportunities for Shandong Gold and Shengtak New
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Shandong and Shengtak is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Gold Mining and Shengtak New Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengtak New Material 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 Shengtak New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shengtak New Material has no effect on the direction of Shandong Gold i.e., Shandong Gold and Shengtak New go up and down completely randomly.
Pair Corralation between Shandong Gold and Shengtak New
Assuming the 90 days trading horizon Shandong Gold Mining is expected to under-perform the Shengtak New. But the stock apears to be less risky and, when comparing its historical volatility, Shandong Gold Mining is 1.35 times less risky than Shengtak New. The stock trades about -0.2 of its potential returns per unit of risk. The Shengtak New Material is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 3,225 in Shengtak New Material on September 28, 2024 and sell it today you would lose (68.00) from holding Shengtak New Material or give up 2.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Gold Mining vs. Shengtak New Material
Performance |
| Timeline |
| Shandong Gold Mining |
| Shengtak New Material |
Shandong Gold and Shengtak New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Gold and Shengtak New
The main advantage of trading using opposite Shandong Gold and Shengtak New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Gold position performs unexpectedly, Shengtak New 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 Shengtak New will offset losses from the drop in Shengtak New'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 |
| Shengtak New vs. Peoples Insurance of | Shengtak New vs. Anhui Deli Household | Shengtak New vs. Harvest Fund Management | Shengtak New vs. Marssenger Kitchenware 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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