Correlation Between Shandong Gold and Anhui Huaheng
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By analyzing existing cross correlation between Shandong Gold Mining and Anhui Huaheng Biotechnology, you can compare the effects of market volatilities on Shandong Gold and Anhui Huaheng 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 Anhui Huaheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Gold and Anhui Huaheng.
Diversification Opportunities for Shandong Gold and Anhui Huaheng
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shandong and Anhui is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Gold Mining and Anhui Huaheng Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Huaheng Biotec 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 Anhui Huaheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Huaheng Biotec has no effect on the direction of Shandong Gold i.e., Shandong Gold and Anhui Huaheng go up and down completely randomly.
Pair Corralation between Shandong Gold and Anhui Huaheng
Assuming the 90 days trading horizon Shandong Gold Mining is expected to under-perform the Anhui Huaheng. But the stock apears to be less risky and, when comparing its historical volatility, Shandong Gold Mining is 2.51 times less risky than Anhui Huaheng. The stock trades about -0.02 of its potential returns per unit of risk. The Anhui Huaheng Biotechnology is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 2,993 in Anhui Huaheng Biotechnology on November 2, 2024 and sell it today you would lose (275.00) from holding Anhui Huaheng Biotechnology or give up 9.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Gold Mining vs. Anhui Huaheng Biotechnology
Performance |
| Timeline |
| Shandong Gold Mining |
| Anhui Huaheng Biotec |
Shandong Gold and Anhui Huaheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Gold and Anhui Huaheng
The main advantage of trading using opposite Shandong Gold and Anhui Huaheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Gold position performs unexpectedly, Anhui Huaheng 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 Anhui Huaheng will offset losses from the drop in Anhui Huaheng's long position.| Shandong Gold vs. Sharetronic Data Technology | Shandong Gold vs. COL Digital Publishing | Shandong Gold vs. Sinofibers Technology Co | Shandong Gold vs. Changjiang Publishing Media |
| Anhui Huaheng vs. Fujian Nanwang Environment | Anhui Huaheng vs. Zhangjiagang Elegant Home | Anhui Huaheng vs. City Development Environment | Anhui Huaheng vs. Shandong Homey Aquatic |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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