Correlation Between Shandong Gold and Zhejiang Huayou
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shandong Gold Mining and Zhejiang Huayou Cobalt, you can compare the effects of market volatilities on Shandong Gold and Zhejiang Huayou 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 Zhejiang Huayou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Gold and Zhejiang Huayou.
Diversification Opportunities for Shandong Gold and Zhejiang Huayou
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shandong and Zhejiang is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Gold Mining and Zhejiang Huayou Cobalt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Huayou Cobalt 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 Zhejiang Huayou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Huayou Cobalt has no effect on the direction of Shandong Gold i.e., Shandong Gold and Zhejiang Huayou go up and down completely randomly.
Pair Corralation between Shandong Gold and Zhejiang Huayou
Assuming the 90 days trading horizon Shandong Gold Mining is expected to generate 1.04 times more return on investment than Zhejiang Huayou. However, Shandong Gold is 1.04 times more volatile than Zhejiang Huayou Cobalt. It trades about 0.17 of its potential returns per unit of risk. Zhejiang Huayou Cobalt is currently generating about -0.08 per unit of risk. If you would invest 2,297 in Shandong Gold Mining on October 30, 2024 and sell it today you would earn a total of 136.00 from holding Shandong Gold Mining or generate 5.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Gold Mining vs. Zhejiang Huayou Cobalt
Performance |
| Timeline |
| Shandong Gold Mining |
| Zhejiang Huayou Cobalt |
Shandong Gold and Zhejiang Huayou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Gold and Zhejiang Huayou
The main advantage of trading using opposite Shandong Gold and Zhejiang Huayou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Gold position performs unexpectedly, Zhejiang Huayou 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 Zhejiang Huayou will offset losses from the drop in Zhejiang Huayou's long position.| Shandong Gold vs. Jiangsu Jinling Sports | Shandong Gold vs. Fujian Longzhou Transportation | Shandong Gold vs. Tjk Machinery Tianjin | Shandong Gold vs. Hubeiyichang Transportation Group |
| Zhejiang Huayou vs. Zijin Mining Group | Zhejiang Huayou vs. Wanhua Chemical Group | Zhejiang Huayou vs. Baoshan Iron Steel | Zhejiang Huayou 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Commodity Directory Find actively traded commodities issued by global exchanges |