Correlation Between Shandong Gold and Aluminum Corp
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By analyzing existing cross correlation between Shandong Gold Mining and Aluminum Corp of, you can compare the effects of market volatilities on Shandong Gold and Aluminum Corp 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 Aluminum Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Gold and Aluminum Corp.
Diversification Opportunities for Shandong Gold and Aluminum Corp
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shandong and Aluminum is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Gold Mining and Aluminum Corp of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aluminum Corp 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 Aluminum Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aluminum Corp has no effect on the direction of Shandong Gold i.e., Shandong Gold and Aluminum Corp go up and down completely randomly.
Pair Corralation between Shandong Gold and Aluminum Corp
Assuming the 90 days trading horizon Shandong Gold Mining is expected to generate 0.95 times more return on investment than Aluminum Corp. However, Shandong Gold Mining is 1.06 times less risky than Aluminum Corp. It trades about 0.02 of its potential returns per unit of risk. Aluminum Corp of is currently generating about 0.02 per unit of risk. If you would invest 2,458 in Shandong Gold Mining on October 26, 2024 and sell it today you would earn a total of 23.00 from holding Shandong Gold Mining or generate 0.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Gold Mining vs. Aluminum Corp of
Performance |
| Timeline |
| Shandong Gold Mining |
| Aluminum Corp |
Shandong Gold and Aluminum Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Gold and Aluminum Corp
The main advantage of trading using opposite Shandong Gold and Aluminum Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Gold position performs unexpectedly, Aluminum Corp 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 Aluminum Corp will offset losses from the drop in Aluminum Corp's long position.| Shandong Gold vs. Easyhome New Retail | Shandong Gold vs. AUPU Home Style | Shandong Gold vs. Ningbo Fujia Industrial | Shandong Gold vs. Xinjiang Baodi Mining |
| Aluminum Corp vs. Zijin Mining Group | Aluminum Corp vs. Wanhua Chemical Group | Aluminum Corp vs. Baoshan Iron Steel | Aluminum Corp 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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