Correlation Between Shandong Gold and Rising Nonferrous
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By analyzing existing cross correlation between Shandong Gold Mining and Rising Nonferrous Metals, you can compare the effects of market volatilities on Shandong Gold and Rising Nonferrous 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 Rising Nonferrous. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Gold and Rising Nonferrous.
Diversification Opportunities for Shandong Gold and Rising Nonferrous
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shandong and Rising is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Gold Mining and Rising Nonferrous Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rising Nonferrous Metals 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 Rising Nonferrous. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rising Nonferrous Metals has no effect on the direction of Shandong Gold i.e., Shandong Gold and Rising Nonferrous go up and down completely randomly.
Pair Corralation between Shandong Gold and Rising Nonferrous
Assuming the 90 days trading horizon Shandong Gold is expected to generate 1.02 times less return on investment than Rising Nonferrous. But when comparing it to its historical volatility, Shandong Gold Mining is 1.6 times less risky than Rising Nonferrous. It trades about 0.16 of its potential returns per unit of risk. Rising Nonferrous Metals is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2,709 in Rising Nonferrous Metals on November 3, 2024 and sell it today you would earn a total of 129.00 from holding Rising Nonferrous Metals or generate 4.76% 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. Rising Nonferrous Metals
Performance |
| Timeline |
| Shandong Gold Mining |
| Rising Nonferrous Metals |
Shandong Gold and Rising Nonferrous Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Gold and Rising Nonferrous
The main advantage of trading using opposite Shandong Gold and Rising Nonferrous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Gold position performs unexpectedly, Rising Nonferrous 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 Rising Nonferrous will offset losses from the drop in Rising Nonferrous' long position.| Shandong Gold vs. V V Food | Shandong Gold vs. Guocheng Mining Co | Shandong Gold vs. Jiangxi Naipu Mining | Shandong Gold vs. Shenyang Blue Silver |
| Rising Nonferrous vs. Zijin Mining Group | Rising Nonferrous vs. Wanhua Chemical Group | Rising Nonferrous vs. Baoshan Iron Steel | Rising Nonferrous 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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