Correlation Between Zhejiang Huayou and Shandong Gold
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By analyzing existing cross correlation between Zhejiang Huayou Cobalt and Shandong Gold Mining, you can compare the effects of market volatilities on Zhejiang Huayou 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 Zhejiang Huayou with a short position of Shandong Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Huayou and Shandong Gold.
Diversification Opportunities for Zhejiang Huayou and Shandong Gold
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Zhejiang and Shandong is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Huayou Cobalt 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 Zhejiang Huayou 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 Zhejiang Huayou Cobalt 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 Zhejiang Huayou i.e., Zhejiang Huayou and Shandong Gold go up and down completely randomly.
Pair Corralation between Zhejiang Huayou and Shandong Gold
Assuming the 90 days trading horizon Zhejiang Huayou Cobalt is expected to under-perform the Shandong Gold. In addition to that, Zhejiang Huayou is 1.04 times more volatile than Shandong Gold Mining. It trades about -0.15 of its total potential returns per unit of risk. Shandong Gold Mining is currently generating about 0.0 per unit of volatility. If you would invest 2,446 in Shandong Gold Mining on October 30, 2024 and sell it today you would lose (13.00) from holding Shandong Gold Mining or give up 0.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Huayou Cobalt vs. Shandong Gold Mining
Performance |
| Timeline |
| Zhejiang Huayou Cobalt |
| Shandong Gold Mining |
Zhejiang Huayou and Shandong Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Huayou and Shandong Gold
The main advantage of trading using opposite Zhejiang Huayou and Shandong Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Huayou 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.| Zhejiang Huayou vs. Zijin Mining Group | Zhejiang Huayou vs. Wanhua Chemical Group | Zhejiang Huayou vs. Baoshan Iron Steel | Zhejiang Huayou vs. Shandong Gold Mining |
| Shandong Gold vs. Jiangsu Jinling Sports | Shandong Gold vs. Fujian Longzhou Transportation | Shandong Gold vs. Tjk Machinery Tianjin | Shandong Gold vs. Hubeiyichang Transportation Group |
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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