Correlation Between Shandong Gold and Luyin Investment
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By analyzing existing cross correlation between Shandong Gold Mining and Luyin Investment Group, you can compare the effects of market volatilities on Shandong Gold and Luyin Investment 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 Luyin Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Gold and Luyin Investment.
Diversification Opportunities for Shandong Gold and Luyin Investment
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shandong and Luyin is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Gold Mining and Luyin Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luyin Investment 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 Luyin Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luyin Investment has no effect on the direction of Shandong Gold i.e., Shandong Gold and Luyin Investment go up and down completely randomly.
Pair Corralation between Shandong Gold and Luyin Investment
Assuming the 90 days trading horizon Shandong Gold Mining is expected to under-perform the Luyin Investment. But the stock apears to be less risky and, when comparing its historical volatility, Shandong Gold Mining is 1.18 times less risky than Luyin Investment. The stock trades about -0.07 of its potential returns per unit of risk. The Luyin Investment Group is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 512.00 in Luyin Investment Group on August 25, 2024 and sell it today you would earn a total of 73.00 from holding Luyin Investment Group or generate 14.26% 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. Luyin Investment Group
Performance |
| Timeline |
| Shandong Gold Mining |
| Luyin Investment |
Shandong Gold and Luyin Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Gold and Luyin Investment
The main advantage of trading using opposite Shandong Gold and Luyin Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Gold position performs unexpectedly, Luyin Investment 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 Luyin Investment will offset losses from the drop in Luyin Investment's long position.| Shandong Gold vs. Xian International Medical | Shandong Gold vs. Lutian Machinery Co | Shandong Gold vs. Shaanxi Construction Machinery | Shandong Gold vs. Ningbo Construction Co |
| Luyin Investment vs. Zijin Mining Group | Luyin Investment vs. Wanhua Chemical Group | Luyin Investment vs. Baoshan Iron Steel | Luyin Investment 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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