Correlation Between Shanghai Broadband and Shandong Gold
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By analyzing existing cross correlation between Shanghai Broadband Technology and Shandong Gold Mining, you can compare the effects of market volatilities on Shanghai Broadband and Shandong Gold 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 Shanghai Broadband with a short position of Shandong Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Broadband and Shandong Gold.
Diversification Opportunities for Shanghai Broadband and Shandong Gold
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shanghai and Shandong is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Broadband Technology and Shandong Gold Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Gold Mining and Shanghai Broadband 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 Shanghai Broadband Technology are associated (or correlated) with Shandong Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Gold Mining has no effect on the direction of Shanghai Broadband i.e., Shanghai Broadband and Shandong Gold go up and down completely randomly.
Pair Corralation between Shanghai Broadband and Shandong Gold
Assuming the 90 days trading horizon Shanghai Broadband Technology is expected to generate 1.31 times more return on investment than Shandong Gold. However, Shanghai Broadband is 1.31 times more volatile than Shandong Gold Mining. It trades about 0.02 of its potential returns per unit of risk. Shandong Gold Mining is currently generating about 0.01 per unit of risk. If you would invest 391.00 in Shanghai Broadband Technology on September 1, 2024 and sell it today you would earn a total of 19.00 from holding Shanghai Broadband Technology or generate 4.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Broadband Technology vs. Shandong Gold Mining
Performance |
| Timeline |
| Shanghai Broadband |
| Shandong Gold Mining |
Shanghai Broadband and Shandong Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Broadband and Shandong Gold
The main advantage of trading using opposite Shanghai Broadband and Shandong Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Broadband position performs unexpectedly, Shandong Gold 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 Shandong Gold will offset losses from the drop in Shandong Gold's long position.| Shanghai Broadband vs. Zijin Mining Group | Shanghai Broadband vs. Wanhua Chemical Group | Shanghai Broadband vs. Baoshan Iron Steel | Shanghai Broadband vs. Shandong Gold Mining |
| Shandong Gold vs. Dhc Software Co | Shandong Gold vs. Western Superconducting Tech | Shandong Gold vs. Guangdong Jingyi Metal | Shandong Gold vs. Guocheng Mining Co |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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