Correlation Between Dongxing Sec and Shandong Mining
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By analyzing existing cross correlation between Dongxing Sec Co and Shandong Mining Machinery, you can compare the effects of market volatilities on Dongxing Sec and Shandong Mining 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 Dongxing Sec with a short position of Shandong Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongxing Sec and Shandong Mining.
Diversification Opportunities for Dongxing Sec and Shandong Mining
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dongxing and Shandong is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Dongxing Sec Co and Shandong Mining Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Mining Machinery and Dongxing Sec 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 Dongxing Sec Co are associated (or correlated) with Shandong Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Mining Machinery has no effect on the direction of Dongxing Sec i.e., Dongxing Sec and Shandong Mining go up and down completely randomly.
Pair Corralation between Dongxing Sec and Shandong Mining
Assuming the 90 days trading horizon Dongxing Sec is expected to generate 1.47 times less return on investment than Shandong Mining. In addition to that, Dongxing Sec is 1.23 times more volatile than Shandong Mining Machinery. It trades about 0.09 of its total potential returns per unit of risk. Shandong Mining Machinery is currently generating about 0.17 per unit of volatility. If you would invest 264.00 in Shandong Mining Machinery on August 30, 2024 and sell it today you would earn a total of 33.00 from holding Shandong Mining Machinery or generate 12.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongxing Sec Co vs. Shandong Mining Machinery
Performance |
| Timeline |
| Dongxing Sec |
| Shandong Mining Machinery |
Dongxing Sec and Shandong Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongxing Sec and Shandong Mining
The main advantage of trading using opposite Dongxing Sec and Shandong Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongxing Sec position performs unexpectedly, Shandong Mining 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 Mining will offset losses from the drop in Shandong Mining's long position.| Dongxing Sec vs. Xiwang Foodstuffs Co | Dongxing Sec vs. Youyou Foods Co | Dongxing Sec vs. Guilin Seamild Foods | Dongxing Sec vs. Xinjiang Tianrun Dairy |
| Shandong Mining vs. China Life Insurance | Shandong Mining vs. Cinda Securities Co | Shandong Mining vs. Piotech Inc A | Shandong Mining vs. Dongxing Sec 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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