Correlation Between Shandong Gold and Shanghai Yaohua
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By analyzing existing cross correlation between Shandong Gold Mining and Shanghai Yaohua Pilkington, you can compare the effects of market volatilities on Shandong Gold and Shanghai Yaohua 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 Yaohua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Gold and Shanghai Yaohua.
Diversification Opportunities for Shandong Gold and Shanghai Yaohua
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shandong and Shanghai is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Gold Mining and Shanghai Yaohua Pilkington in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Yaohua Pilk 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 Yaohua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Yaohua Pilk has no effect on the direction of Shandong Gold i.e., Shandong Gold and Shanghai Yaohua go up and down completely randomly.
Pair Corralation between Shandong Gold and Shanghai Yaohua
Assuming the 90 days trading horizon Shandong Gold is expected to generate 2.63 times less return on investment than Shanghai Yaohua. But when comparing it to its historical volatility, Shandong Gold Mining is 1.12 times less risky than Shanghai Yaohua. It trades about 0.03 of its potential returns per unit of risk. Shanghai Yaohua Pilkington is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 26.00 in Shanghai Yaohua Pilkington on August 26, 2024 and sell it today you would earn a total of 9.00 from holding Shanghai Yaohua Pilkington or generate 34.62% 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. Shanghai Yaohua Pilkington
Performance |
| Timeline |
| Shandong Gold Mining |
| Shanghai Yaohua Pilk |
Shandong Gold and Shanghai Yaohua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Gold and Shanghai Yaohua
The main advantage of trading using opposite Shandong Gold and Shanghai Yaohua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Gold position performs unexpectedly, Shanghai Yaohua 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 Yaohua will offset losses from the drop in Shanghai Yaohua's long position.| Shandong Gold vs. Suofeiya Home Collection | Shandong Gold vs. Ping An Insurance | Shandong Gold vs. DO Home Collection | Shandong Gold vs. Jiangsu Xinri E Vehicle |
| Shanghai Yaohua vs. Henan Shuanghui Investment | Shanghai Yaohua vs. Zhejiang Daily Media | Shanghai Yaohua vs. Hengdian Entertainment Co | Shanghai Yaohua vs. Tieling Newcity Investment |
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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