Correlation Between Piotech and Shandong Mining
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By analyzing existing cross correlation between Piotech Inc A and Shandong Mining Machinery, you can compare the effects of market volatilities on Piotech 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 Piotech with a short position of Shandong Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Piotech and Shandong Mining.
Diversification Opportunities for Piotech and Shandong Mining
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Piotech and Shandong is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Piotech Inc A 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 Piotech 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 Piotech Inc A 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 Piotech i.e., Piotech and Shandong Mining go up and down completely randomly.
Pair Corralation between Piotech and Shandong Mining
Assuming the 90 days trading horizon Piotech Inc A is expected to generate 1.38 times more return on investment than Shandong Mining. However, Piotech is 1.38 times more volatile than Shandong Mining Machinery. It trades about 0.22 of its potential returns per unit of risk. Shandong Mining Machinery is currently generating about 0.17 per unit of risk. If you would invest 15,292 in Piotech Inc A on August 30, 2024 and sell it today you would earn a total of 3,721 from holding Piotech Inc A or generate 24.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Piotech Inc A vs. Shandong Mining Machinery
Performance |
| Timeline |
| Piotech Inc A |
| Shandong Mining Machinery |
Piotech and Shandong Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Piotech and Shandong Mining
The main advantage of trading using opposite Piotech and Shandong Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Piotech 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.| Piotech vs. Techshine Electronics Co | Piotech vs. Kunshan Guoli Electronic | Piotech vs. Weihai Honglin Electronic | Piotech vs. Leyard Optoelectronic |
| Shandong Mining vs. China Life Insurance | Shandong Mining vs. Cinda Securities Co | Shandong Mining vs. Piotech Inc A | Shandong Mining vs. Dongxing Sec 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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