Correlation Between STGEORGE MINING and ZhongAn Online
Can any of the company-specific risk be diversified away by investing in both STGEORGE MINING and ZhongAn Online at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining STGEORGE MINING and ZhongAn Online into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STGEORGE MINING LTD and ZhongAn Online P, you can compare the effects of market volatilities on STGEORGE MINING and ZhongAn Online 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 STGEORGE MINING with a short position of ZhongAn Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of STGEORGE MINING and ZhongAn Online.
Diversification Opportunities for STGEORGE MINING and ZhongAn Online
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between STGEORGE and ZhongAn is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding STGEORGE MINING LTD and ZhongAn Online P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZhongAn Online P and STGEORGE 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 STGEORGE MINING LTD are associated (or correlated) with ZhongAn Online. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZhongAn Online P has no effect on the direction of STGEORGE MINING i.e., STGEORGE MINING and ZhongAn Online go up and down completely randomly.
Pair Corralation between STGEORGE MINING and ZhongAn Online
Assuming the 90 days horizon STGEORGE MINING LTD is expected to generate 3.31 times more return on investment than ZhongAn Online. However, STGEORGE MINING is 3.31 times more volatile than ZhongAn Online P. It trades about 0.11 of its potential returns per unit of risk. ZhongAn Online P is currently generating about 0.28 per unit of risk. If you would invest 1.20 in STGEORGE MINING LTD on November 7, 2024 and sell it today you would earn a total of 0.15 from holding STGEORGE MINING LTD or generate 12.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
STGEORGE MINING LTD vs. ZhongAn Online P
Performance |
| Timeline |
| STGEORGE MINING LTD |
| ZhongAn Online P |
STGEORGE MINING and ZhongAn Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STGEORGE MINING and ZhongAn Online
The main advantage of trading using opposite STGEORGE MINING and ZhongAn Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STGEORGE MINING position performs unexpectedly, ZhongAn Online 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 ZhongAn Online will offset losses from the drop in ZhongAn Online's long position.| STGEORGE MINING vs. BHP Group Limited | STGEORGE MINING vs. Rio Tinto Group | STGEORGE MINING vs. Vale SA | STGEORGE MINING vs. Vale SA |
| ZhongAn Online vs. CLOVER HEALTH INV | ZhongAn Online vs. PURE FOODS TASMANIA | ZhongAn Online vs. PLANT VEDA FOODS | ZhongAn Online vs. Planet Fitness |
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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