Correlation Between Shandong Gold and Shanghai Broadband
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By analyzing existing cross correlation between Shandong Gold Mining and Shanghai Broadband Technology, you can compare the effects of market volatilities on Shandong Gold and Shanghai Broadband 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 Shanghai Broadband. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Gold and Shanghai Broadband.
Diversification Opportunities for Shandong Gold and Shanghai Broadband
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Shandong and Shanghai is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Gold Mining and Shanghai Broadband Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Broadband 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 Shanghai Broadband. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Broadband has no effect on the direction of Shandong Gold i.e., Shandong Gold and Shanghai Broadband go up and down completely randomly.
Pair Corralation between Shandong Gold and Shanghai Broadband
Assuming the 90 days trading horizon Shandong Gold Mining is expected to generate 0.79 times more return on investment than Shanghai Broadband. However, Shandong Gold Mining is 1.26 times less risky than Shanghai Broadband. It trades about 0.03 of its potential returns per unit of risk. Shanghai Broadband Technology is currently generating about -0.02 per unit of risk. If you would invest 1,921 in Shandong Gold Mining on November 5, 2024 and sell it today you would earn a total of 512.00 from holding Shandong Gold Mining or generate 26.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Gold Mining vs. Shanghai Broadband Technology
Performance |
| Timeline |
| Shandong Gold Mining |
| Shanghai Broadband |
Shandong Gold and Shanghai Broadband Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Gold and Shanghai Broadband
The main advantage of trading using opposite Shandong Gold and Shanghai Broadband positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Gold position performs unexpectedly, Shanghai Broadband 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 Shanghai Broadband will offset losses from the drop in Shanghai Broadband's long position.| Shandong Gold vs. Quectel Wireless Solutions | Shandong Gold vs. Luyin Investment Group | Shandong Gold vs. Henan Shuanghui Investment | Shandong Gold vs. Shandong Longquan Pipeline |
| Shanghai Broadband vs. Zijin Mining Group | Shanghai Broadband vs. Wanhua Chemical Group | Shanghai Broadband vs. Baoshan Iron Steel | Shanghai Broadband 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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