Correlation Between Shandong Gold and China Kings
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By analyzing existing cross correlation between Shandong Gold Mining and China Kings Resources, you can compare the effects of market volatilities on Shandong Gold and China Kings 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 China Kings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Gold and China Kings.
Diversification Opportunities for Shandong Gold and China Kings
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shandong and China is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Gold Mining and China Kings Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Kings Resources 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 China Kings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Kings Resources has no effect on the direction of Shandong Gold i.e., Shandong Gold and China Kings go up and down completely randomly.
Pair Corralation between Shandong Gold and China Kings
Assuming the 90 days trading horizon Shandong Gold Mining is expected to generate 0.49 times more return on investment than China Kings. However, Shandong Gold Mining is 2.03 times less risky than China Kings. It trades about -0.27 of its potential returns per unit of risk. China Kings Resources is currently generating about -0.15 per unit of risk. If you would invest 2,645 in Shandong Gold Mining on September 3, 2024 and sell it today you would lose (199.00) from holding Shandong Gold Mining or give up 7.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Gold Mining vs. China Kings Resources
Performance |
| Timeline |
| Shandong Gold Mining |
| China Kings Resources |
Shandong Gold and China Kings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Gold and China Kings
The main advantage of trading using opposite Shandong Gold and China Kings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Gold position performs unexpectedly, China Kings 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 China Kings will offset losses from the drop in China Kings' long position.| Shandong Gold vs. Hubeiyichang Transportation Group | Shandong Gold vs. Zhongtong Guomai Communication | Shandong Gold vs. Jilin Jlu Communication | Shandong Gold vs. Xinjiang Communications Construction |
| China Kings vs. China National Software | China Kings vs. Semiconductor Manufacturing Electronics | China Kings vs. Long Yuan Construction | China Kings vs. Shenzhen Clou Electronics |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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