Correlation Between Shandong Gold and Xinjiang Baodi
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By analyzing existing cross correlation between Shandong Gold Mining and Xinjiang Baodi Mining, you can compare the effects of market volatilities on Shandong Gold and Xinjiang Baodi 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 Xinjiang Baodi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Gold and Xinjiang Baodi.
Diversification Opportunities for Shandong Gold and Xinjiang Baodi
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shandong and Xinjiang is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Gold Mining and Xinjiang Baodi Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Baodi Mining 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 Xinjiang Baodi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Baodi Mining has no effect on the direction of Shandong Gold i.e., Shandong Gold and Xinjiang Baodi go up and down completely randomly.
Pair Corralation between Shandong Gold and Xinjiang Baodi
Assuming the 90 days trading horizon Shandong Gold Mining is expected to generate 0.56 times more return on investment than Xinjiang Baodi. However, Shandong Gold Mining is 1.79 times less risky than Xinjiang Baodi. It trades about 0.16 of its potential returns per unit of risk. Xinjiang Baodi Mining is currently generating about -0.16 per unit of risk. If you would invest 2,315 in Shandong Gold Mining on November 2, 2024 and sell it today you would earn a total of 118.00 from holding Shandong Gold Mining or generate 5.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Gold Mining vs. Xinjiang Baodi Mining
Performance |
| Timeline |
| Shandong Gold Mining |
| Xinjiang Baodi Mining |
Shandong Gold and Xinjiang Baodi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Gold and Xinjiang Baodi
The main advantage of trading using opposite Shandong Gold and Xinjiang Baodi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Gold position performs unexpectedly, Xinjiang Baodi 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 Xinjiang Baodi will offset losses from the drop in Xinjiang Baodi's long position.| Shandong Gold vs. Sharetronic Data Technology | Shandong Gold vs. COL Digital Publishing | Shandong Gold vs. Sinofibers Technology Co | Shandong Gold vs. Changjiang Publishing Media |
| Xinjiang Baodi vs. Zijin Mining Group | Xinjiang Baodi vs. Wanhua Chemical Group | Xinjiang Baodi vs. Baoshan Iron Steel | Xinjiang Baodi 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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