Correlation Between Shandong Gold and GRIPM Advanced
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By analyzing existing cross correlation between Shandong Gold Mining and GRIPM Advanced Materials, you can compare the effects of market volatilities on Shandong Gold and GRIPM Advanced 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 GRIPM Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Gold and GRIPM Advanced.
Diversification Opportunities for Shandong Gold and GRIPM Advanced
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shandong and GRIPM is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Gold Mining and GRIPM Advanced Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRIPM Advanced Materials 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 GRIPM Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRIPM Advanced Materials has no effect on the direction of Shandong Gold i.e., Shandong Gold and GRIPM Advanced go up and down completely randomly.
Pair Corralation between Shandong Gold and GRIPM Advanced
Assuming the 90 days trading horizon Shandong Gold Mining is expected to generate 0.64 times more return on investment than GRIPM Advanced. However, Shandong Gold Mining is 1.55 times less risky than GRIPM Advanced. It trades about 0.03 of its potential returns per unit of risk. GRIPM Advanced Materials is currently generating about 0.01 per unit of risk. If you would invest 2,045 in Shandong Gold Mining on August 29, 2024 and sell it today you would earn a total of 387.00 from holding Shandong Gold Mining or generate 18.92% 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. GRIPM Advanced Materials
Performance |
| Timeline |
| Shandong Gold Mining |
| GRIPM Advanced Materials |
Shandong Gold and GRIPM Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Gold and GRIPM Advanced
The main advantage of trading using opposite Shandong Gold and GRIPM Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Gold position performs unexpectedly, GRIPM Advanced 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 GRIPM Advanced will offset losses from the drop in GRIPM Advanced'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 |
| GRIPM Advanced vs. Zijin Mining Group | GRIPM Advanced vs. Wanhua Chemical Group | GRIPM Advanced vs. Baoshan Iron Steel | GRIPM Advanced 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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