Correlation Between Jinhui Mining and Shandong Gold
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By analyzing existing cross correlation between Jinhui Mining Co and Shandong Gold Mining, you can compare the effects of market volatilities on Jinhui Mining 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 Jinhui Mining with a short position of Shandong Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Mining and Shandong Gold.
Diversification Opportunities for Jinhui Mining and Shandong Gold
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Jinhui and Shandong is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Mining Co 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 Jinhui Mining 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 Jinhui Mining Co 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 Jinhui Mining i.e., Jinhui Mining and Shandong Gold go up and down completely randomly.
Pair Corralation between Jinhui Mining and Shandong Gold
Assuming the 90 days trading horizon Jinhui Mining is expected to generate 4.6 times less return on investment than Shandong Gold. In addition to that, Jinhui Mining is 1.08 times more volatile than Shandong Gold Mining. It trades about 0.01 of its total potential returns per unit of risk. Shandong Gold Mining is currently generating about 0.03 per unit of volatility. If you would invest 2,045 in Shandong Gold Mining on August 29, 2024 and sell it today you would earn a total of 403.00 from holding Shandong Gold Mining or generate 19.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinhui Mining Co vs. Shandong Gold Mining
Performance |
| Timeline |
| Jinhui Mining |
| Shandong Gold Mining |
Jinhui Mining and Shandong Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhui Mining and Shandong Gold
The main advantage of trading using opposite Jinhui Mining and Shandong Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Mining 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.| Jinhui Mining vs. Shandong Gold Mining | Jinhui Mining vs. Rongsheng Petrochemical Co | Jinhui Mining vs. Inner Mongolia BaoTou | Jinhui Mining vs. Jiangxi Ganfeng Lithium |
| Shandong Gold vs. Dongguan Aohai Technology | Shandong Gold vs. Jiujiang Shanshui Technology | Shandong Gold vs. Guangzhou KingTeller Technology | Shandong Gold vs. GigaDevice SemiconductorBeiji |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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