Correlation Between Ningbo Jintian and Shandong Mining
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By analyzing existing cross correlation between Ningbo Jintian Copper and Shandong Mining Machinery, you can compare the effects of market volatilities on Ningbo Jintian 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 Ningbo Jintian with a short position of Shandong Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Jintian and Shandong Mining.
Diversification Opportunities for Ningbo Jintian and Shandong Mining
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ningbo and Shandong is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Jintian Copper 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 Ningbo Jintian 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 Ningbo Jintian Copper 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 Ningbo Jintian i.e., Ningbo Jintian and Shandong Mining go up and down completely randomly.
Pair Corralation between Ningbo Jintian and Shandong Mining
Assuming the 90 days trading horizon Ningbo Jintian is expected to generate 5.43 times less return on investment than Shandong Mining. But when comparing it to its historical volatility, Ningbo Jintian Copper is 2.85 times less risky than Shandong Mining. It trades about 0.15 of its potential returns per unit of risk. Shandong Mining Machinery is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 277.00 in Shandong Mining Machinery on September 1, 2024 and sell it today you would earn a total of 83.00 from holding Shandong Mining Machinery or generate 29.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Jintian Copper vs. Shandong Mining Machinery
Performance |
| Timeline |
| Ningbo Jintian Copper |
| Shandong Mining Machinery |
Ningbo Jintian and Shandong Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Jintian and Shandong Mining
The main advantage of trading using opposite Ningbo Jintian and Shandong Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Jintian 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.| Ningbo Jintian vs. Zijin Mining Group | Ningbo Jintian vs. Wanhua Chemical Group | Ningbo Jintian vs. Baoshan Iron Steel | Ningbo Jintian vs. Shandong Gold Mining |
| Shandong Mining vs. Cultural Investment Holdings | Shandong Mining vs. Gome Telecom Equipment | Shandong Mining vs. Bus Online Co | Shandong Mining vs. Holitech Technology 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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