Correlation Between Sichuan Yahua and Shandong Gold
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By analyzing existing cross correlation between Sichuan Yahua Industrial and Shandong Gold Mining, you can compare the effects of market volatilities on Sichuan Yahua 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 Sichuan Yahua with a short position of Shandong Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Yahua and Shandong Gold.
Diversification Opportunities for Sichuan Yahua and Shandong Gold
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sichuan and Shandong is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Yahua Industrial 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 Sichuan Yahua 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 Sichuan Yahua Industrial 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 Sichuan Yahua i.e., Sichuan Yahua and Shandong Gold go up and down completely randomly.
Pair Corralation between Sichuan Yahua and Shandong Gold
Assuming the 90 days trading horizon Sichuan Yahua Industrial is expected to generate 2.03 times more return on investment than Shandong Gold. However, Sichuan Yahua is 2.03 times more volatile than Shandong Gold Mining. It trades about 0.12 of its potential returns per unit of risk. Shandong Gold Mining is currently generating about -0.22 per unit of risk. If you would invest 1,175 in Sichuan Yahua Industrial on September 20, 2024 and sell it today you would earn a total of 75.00 from holding Sichuan Yahua Industrial or generate 6.38% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Sichuan Yahua Industrial vs. Shandong Gold Mining
Performance |
Timeline |
Sichuan Yahua Industrial |
Shandong Gold Mining |
Sichuan Yahua and Shandong Gold Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sichuan Yahua and Shandong Gold
The main advantage of trading using opposite Sichuan Yahua and Shandong Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Yahua 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.Sichuan Yahua vs. Guizhou Chanhen Chemical | Sichuan Yahua vs. Hengli Petrochemical Co | Sichuan Yahua vs. Cofco Biochemical Anhui | Sichuan Yahua vs. Liuzhou Chemical Industry |
Shandong Gold vs. Xinjiang Baodi Mining | Shandong Gold vs. Sichuan Yahua Industrial | Shandong Gold vs. China Nonferrous Metal | Shandong Gold vs. Zhejiang Yayi Metal |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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