Correlation Between Shandong Gold and Epoxy Base
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shandong Gold Mining and Epoxy Base Electronic, you can compare the effects of market volatilities on Shandong Gold and Epoxy Base 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 Epoxy Base. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Gold and Epoxy Base.
Diversification Opportunities for Shandong Gold and Epoxy Base
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shandong and Epoxy is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Gold Mining and Epoxy Base Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Epoxy Base Electronic 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 Epoxy Base. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Epoxy Base Electronic has no effect on the direction of Shandong Gold i.e., Shandong Gold and Epoxy Base go up and down completely randomly.
Pair Corralation between Shandong Gold and Epoxy Base
Assuming the 90 days trading horizon Shandong Gold Mining is expected to under-perform the Epoxy Base. But the stock apears to be less risky and, when comparing its historical volatility, Shandong Gold Mining is 2.82 times less risky than Epoxy Base. The stock trades about -0.39 of its potential returns per unit of risk. The Epoxy Base Electronic is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 538.00 in Epoxy Base Electronic on August 29, 2024 and sell it today you would earn a total of 16.00 from holding Epoxy Base Electronic or generate 2.97% 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. Epoxy Base Electronic
Performance |
| Timeline |
| Shandong Gold Mining |
| Epoxy Base Electronic |
Shandong Gold and Epoxy Base Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Gold and Epoxy Base
The main advantage of trading using opposite Shandong Gold and Epoxy Base positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Gold position performs unexpectedly, Epoxy Base 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 Epoxy Base will offset losses from the drop in Epoxy Base's long position.| Shandong Gold vs. Success Electronics | Shandong Gold vs. Sichuan Teway Food | Shandong Gold vs. Fuzhou Rockchip Electronics | Shandong Gold vs. Techshine Electronics Co |
| Epoxy Base vs. Vohringer Home Technology | Epoxy Base vs. Zhongshan Broad Ocean Motor | Epoxy Base vs. Xiamen Goldenhome Co | Epoxy Base vs. Sichuan Fulin Transportation |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |