Correlation Between Shandong Mining and Wasu Media
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By analyzing existing cross correlation between Shandong Mining Machinery and Wasu Media Holding, you can compare the effects of market volatilities on Shandong Mining and Wasu Media 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 Shandong Mining with a short position of Wasu Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Mining and Wasu Media.
Diversification Opportunities for Shandong Mining and Wasu Media
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shandong and Wasu is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Mining Machinery and Wasu Media Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wasu Media Holding and Shandong 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 Shandong Mining Machinery are associated (or correlated) with Wasu Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wasu Media Holding has no effect on the direction of Shandong Mining i.e., Shandong Mining and Wasu Media go up and down completely randomly.
Pair Corralation between Shandong Mining and Wasu Media
Assuming the 90 days trading horizon Shandong Mining Machinery is expected to generate 2.08 times more return on investment than Wasu Media. However, Shandong Mining is 2.08 times more volatile than Wasu Media Holding. It trades about 0.1 of its potential returns per unit of risk. Wasu Media Holding is currently generating about -0.06 per unit of risk. If you would invest 274.00 in Shandong Mining Machinery on October 5, 2024 and sell it today you would earn a total of 75.00 from holding Shandong Mining Machinery or generate 27.37% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Shandong Mining Machinery vs. Wasu Media Holding
Performance |
Timeline |
Shandong Mining Machinery |
Wasu Media Holding |
Shandong Mining and Wasu Media Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shandong Mining and Wasu Media
The main advantage of trading using opposite Shandong Mining and Wasu Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Mining position performs unexpectedly, Wasu Media 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 Wasu Media will offset losses from the drop in Wasu Media's long position.Shandong Mining vs. HaiXin Foods Co | Shandong Mining vs. Qingdao Foods Co | Shandong Mining vs. Xinjiang Tianrun Dairy | Shandong Mining vs. Great Sun Foods Co |
Wasu Media vs. Wuhan Hvsen Biotechnology | Wasu Media vs. SUNSEA Telecommunications Co | Wasu Media vs. Shandong Sanyuan Biotechnology | Wasu Media vs. Jinhe Biotechnology 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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