Correlation Between Tianjin Silvery and Shandong Mining
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By analyzing existing cross correlation between Tianjin Silvery Dragon and Shandong Mining Machinery, you can compare the effects of market volatilities on Tianjin Silvery 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 Tianjin Silvery with a short position of Shandong Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Silvery and Shandong Mining.
Diversification Opportunities for Tianjin Silvery and Shandong Mining
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tianjin and Shandong is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Silvery Dragon 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 Tianjin Silvery 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 Tianjin Silvery Dragon 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 Tianjin Silvery i.e., Tianjin Silvery and Shandong Mining go up and down completely randomly.
Pair Corralation between Tianjin Silvery and Shandong Mining
Assuming the 90 days trading horizon Tianjin Silvery Dragon is expected to generate 1.02 times more return on investment than Shandong Mining. However, Tianjin Silvery is 1.02 times more volatile than Shandong Mining Machinery. It trades about 0.0 of its potential returns per unit of risk. Shandong Mining Machinery is currently generating about -0.01 per unit of risk. If you would invest 569.00 in Tianjin Silvery Dragon on August 27, 2024 and sell it today you would lose (19.00) from holding Tianjin Silvery Dragon or give up 3.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Silvery Dragon vs. Shandong Mining Machinery
Performance |
| Timeline |
| Tianjin Silvery Dragon |
| Shandong Mining Machinery |
Tianjin Silvery and Shandong Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Silvery and Shandong Mining
The main advantage of trading using opposite Tianjin Silvery and Shandong Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Silvery 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.| Tianjin Silvery vs. Wanhua Chemical Group | Tianjin Silvery vs. Shandong Gold Mining | Tianjin Silvery vs. Rongsheng Petrochemical Co | Tianjin Silvery vs. Inner Mongolia BaoTou |
| Shandong Mining vs. Jinhui Mining Co | Shandong Mining vs. Chenzhou Jingui Silver | Shandong Mining vs. Huaibei Mining Holdings | Shandong Mining vs. Tianjin Silvery Dragon |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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