Correlation Between Shandong Gold and Tibet Summit
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shandong Gold Mining and Tibet Summit Resources, you can compare the effects of market volatilities on Shandong Gold and Tibet Summit 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 Tibet Summit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Gold and Tibet Summit.
Diversification Opportunities for Shandong Gold and Tibet Summit
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shandong and Tibet is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Gold Mining and Tibet Summit Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tibet Summit Resources 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 Tibet Summit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tibet Summit Resources has no effect on the direction of Shandong Gold i.e., Shandong Gold and Tibet Summit go up and down completely randomly.
Pair Corralation between Shandong Gold and Tibet Summit
Assuming the 90 days trading horizon Shandong Gold Mining is expected to under-perform the Tibet Summit. But the stock apears to be less risky and, when comparing its historical volatility, Shandong Gold Mining is 1.35 times less risky than Tibet Summit. The stock trades about -0.04 of its potential returns per unit of risk. The Tibet Summit Resources is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 956.00 in Tibet Summit Resources on September 3, 2024 and sell it today you would earn a total of 238.00 from holding Tibet Summit Resources or generate 24.9% 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. Tibet Summit Resources
Performance |
| Timeline |
| Shandong Gold Mining |
| Tibet Summit Resources |
Shandong Gold and Tibet Summit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Gold and Tibet Summit
The main advantage of trading using opposite Shandong Gold and Tibet Summit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Gold position performs unexpectedly, Tibet Summit 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 Tibet Summit will offset losses from the drop in Tibet Summit's long position.| Shandong Gold vs. Hubeiyichang Transportation Group | Shandong Gold vs. Zhongtong Guomai Communication | Shandong Gold vs. Jilin Jlu Communication | Shandong Gold vs. Xinjiang Communications Construction |
| Tibet Summit vs. Shanghai Ziyan Foods | Tibet Summit vs. Xiangyu Medical Co | Tibet Summit vs. Great Sun Foods Co | Tibet Summit vs. Shantou Wanshun Package |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |