Correlation Between Shandong Gold and Shanghai Huayi
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By analyzing existing cross correlation between Shandong Gold Mining and Shanghai Huayi Group, you can compare the effects of market volatilities on Shandong Gold and Shanghai Huayi 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 Shanghai Huayi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Gold and Shanghai Huayi.
Diversification Opportunities for Shandong Gold and Shanghai Huayi
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shandong and Shanghai is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Gold Mining and Shanghai Huayi Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Huayi Group 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 Shanghai Huayi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Huayi Group has no effect on the direction of Shandong Gold i.e., Shandong Gold and Shanghai Huayi go up and down completely randomly.
Pair Corralation between Shandong Gold and Shanghai Huayi
Assuming the 90 days trading horizon Shandong Gold is expected to generate 2.31 times less return on investment than Shanghai Huayi. In addition to that, Shandong Gold is 1.11 times more volatile than Shanghai Huayi Group. It trades about 0.04 of its total potential returns per unit of risk. Shanghai Huayi Group is currently generating about 0.1 per unit of volatility. If you would invest 39.00 in Shanghai Huayi Group on September 14, 2024 and sell it today you would earn a total of 19.00 from holding Shanghai Huayi Group or generate 48.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.58% |
| Values | Daily Returns |
Shandong Gold Mining vs. Shanghai Huayi Group
Performance |
| Timeline |
| Shandong Gold Mining |
| Shanghai Huayi Group |
Shandong Gold and Shanghai Huayi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Gold and Shanghai Huayi
The main advantage of trading using opposite Shandong Gold and Shanghai Huayi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Gold position performs unexpectedly, Shanghai Huayi 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 Shanghai Huayi will offset losses from the drop in Shanghai Huayi's long position.| Shandong Gold vs. Threes Company Media | Shandong Gold vs. Wasu Media Holding | Shandong Gold vs. Oppein Home Group | Shandong Gold vs. Hengdian Entertainment Co |
| Shanghai Huayi vs. Zijin Mining Group | Shanghai Huayi vs. Wanhua Chemical Group | Shanghai Huayi vs. Baoshan Iron Steel | Shanghai Huayi 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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