Correlation Between Zhongtong Guomai and Shandong Gold
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By analyzing existing cross correlation between Zhongtong Guomai Communication and Shandong Gold Mining, you can compare the effects of market volatilities on Zhongtong Guomai 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 Zhongtong Guomai with a short position of Shandong Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongtong Guomai and Shandong Gold.
Diversification Opportunities for Zhongtong Guomai and Shandong Gold
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Zhongtong and Shandong is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Zhongtong Guomai Communication 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 Zhongtong Guomai 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 Zhongtong Guomai Communication 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 Zhongtong Guomai i.e., Zhongtong Guomai and Shandong Gold go up and down completely randomly.
Pair Corralation between Zhongtong Guomai and Shandong Gold
Assuming the 90 days trading horizon Zhongtong Guomai is expected to generate 2.31 times less return on investment than Shandong Gold. In addition to that, Zhongtong Guomai is 1.59 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 1,975 in Shandong Gold Mining on September 3, 2024 and sell it today you would earn a total of 471.00 from holding Shandong Gold Mining or generate 23.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongtong Guomai Communication vs. Shandong Gold Mining
Performance |
| Timeline |
| Zhongtong Guomai Com |
| Shandong Gold Mining |
Zhongtong Guomai and Shandong Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongtong Guomai and Shandong Gold
The main advantage of trading using opposite Zhongtong Guomai and Shandong Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongtong Guomai 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.| Zhongtong Guomai vs. Agricultural Bank of | Zhongtong Guomai vs. China Construction Bank | Zhongtong Guomai vs. Postal Savings Bank | Zhongtong Guomai vs. Bank of Communications |
| Shandong Gold vs. Hubeiyichang Transportation Group | Shandong Gold vs. Zhongtong Guomai Communication | Shandong Gold vs. Jilin Jlu Communication | Shandong Gold vs. Xinjiang Communications Construction |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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