Correlation Between Shandong Gold and Jiangxi Copper
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shandong Gold Mining and Jiangxi Copper Co, you can compare the effects of market volatilities on Shandong Gold and Jiangxi Copper 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 Jiangxi Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Gold and Jiangxi Copper.
Diversification Opportunities for Shandong Gold and Jiangxi Copper
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shandong and Jiangxi is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Gold Mining and Jiangxi Copper Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Copper 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 Jiangxi Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Copper has no effect on the direction of Shandong Gold i.e., Shandong Gold and Jiangxi Copper go up and down completely randomly.
Pair Corralation between Shandong Gold and Jiangxi Copper
Assuming the 90 days trading horizon Shandong Gold Mining is expected to generate 1.03 times more return on investment than Jiangxi Copper. However, Shandong Gold is 1.03 times more volatile than Jiangxi Copper Co. It trades about 0.08 of its potential returns per unit of risk. Jiangxi Copper Co is currently generating about 0.04 per unit of risk. If you would invest 2,344 in Shandong Gold Mining on October 23, 2024 and sell it today you would earn a total of 52.00 from holding Shandong Gold Mining or generate 2.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Gold Mining vs. Jiangxi Copper Co
Performance |
| Timeline |
| Shandong Gold Mining |
| Jiangxi Copper |
Shandong Gold and Jiangxi Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Gold and Jiangxi Copper
The main advantage of trading using opposite Shandong Gold and Jiangxi Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Gold position performs unexpectedly, Jiangxi Copper 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 Jiangxi Copper will offset losses from the drop in Jiangxi Copper's long position.| Shandong Gold vs. Henan Shuanghui Investment | Shandong Gold vs. Xiandai Investment Co | Shandong Gold vs. Metro Investment Development | Shandong Gold vs. Shenzhen Centralcon Investment |
| Jiangxi Copper vs. Zijin Mining Group | Jiangxi Copper vs. Wanhua Chemical Group | Jiangxi Copper vs. Baoshan Iron Steel | Jiangxi Copper 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.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |