Correlation Between Shandong Gold and Fujian Nanwang
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By analyzing existing cross correlation between Shandong Gold Mining and Fujian Nanwang Environment, you can compare the effects of market volatilities on Shandong Gold and Fujian Nanwang 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 Fujian Nanwang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Gold and Fujian Nanwang.
Diversification Opportunities for Shandong Gold and Fujian Nanwang
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shandong and Fujian is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Gold Mining and Fujian Nanwang Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Nanwang Envir 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 Fujian Nanwang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Nanwang Envir has no effect on the direction of Shandong Gold i.e., Shandong Gold and Fujian Nanwang go up and down completely randomly.
Pair Corralation between Shandong Gold and Fujian Nanwang
Assuming the 90 days trading horizon Shandong Gold Mining is expected to under-perform the Fujian Nanwang. But the stock apears to be less risky and, when comparing its historical volatility, Shandong Gold Mining is 1.19 times less risky than Fujian Nanwang. The stock trades about -0.04 of its potential returns per unit of risk. The Fujian Nanwang Environment is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,091 in Fujian Nanwang Environment on September 1, 2024 and sell it today you would earn a total of 151.00 from holding Fujian Nanwang Environment or generate 13.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Gold Mining vs. Fujian Nanwang Environment
Performance |
| Timeline |
| Shandong Gold Mining |
| Fujian Nanwang Envir |
Shandong Gold and Fujian Nanwang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Gold and Fujian Nanwang
The main advantage of trading using opposite Shandong Gold and Fujian Nanwang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Gold position performs unexpectedly, Fujian Nanwang 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 Fujian Nanwang will offset losses from the drop in Fujian Nanwang's long position.| Shandong Gold vs. Dhc Software Co | Shandong Gold vs. Western Superconducting Tech | Shandong Gold vs. Guangdong Jingyi Metal | Shandong Gold vs. Guocheng Mining Co |
| Fujian Nanwang vs. Zijin Mining Group | Fujian Nanwang vs. Wanhua Chemical Group | Fujian Nanwang vs. Baoshan Iron Steel | Fujian Nanwang 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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