Correlation Between Shandong Gold and Do Fluoride
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By analyzing existing cross correlation between Shandong Gold Mining and Do Fluoride Chemicals Co, you can compare the effects of market volatilities on Shandong Gold and Do Fluoride 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 Gold with a short position of Do Fluoride. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Gold and Do Fluoride.
Diversification Opportunities for Shandong Gold and Do Fluoride
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shandong and 002407 is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Gold Mining and Do Fluoride Chemicals Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Do Fluoride Chemicals and Shandong Gold 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 Gold Mining are associated (or correlated) with Do Fluoride. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Do Fluoride Chemicals has no effect on the direction of Shandong Gold i.e., Shandong Gold and Do Fluoride go up and down completely randomly.
Pair Corralation between Shandong Gold and Do Fluoride
Assuming the 90 days trading horizon Shandong Gold is expected to generate 90.2 times less return on investment than Do Fluoride. But when comparing it to its historical volatility, Shandong Gold Mining is 1.98 times less risky than Do Fluoride. It trades about 0.0 of its potential returns per unit of risk. Do Fluoride Chemicals Co is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 986.00 in Do Fluoride Chemicals Co on September 12, 2024 and sell it today you would earn a total of 377.00 from holding Do Fluoride Chemicals Co or generate 38.24% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Shandong Gold Mining vs. Do Fluoride Chemicals Co
Performance |
Timeline |
Shandong Gold Mining |
Do Fluoride Chemicals |
Shandong Gold and Do Fluoride Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shandong Gold and Do Fluoride
The main advantage of trading using opposite Shandong Gold and Do Fluoride positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Gold position performs unexpectedly, Do Fluoride 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 Do Fluoride will offset losses from the drop in Do Fluoride's long position.Shandong Gold vs. Heilongjiang Publishing Media | Shandong Gold vs. Suofeiya Home Collection | Shandong Gold vs. Shuhua Sports Co | Shandong Gold vs. Lander Sports Development |
Do Fluoride vs. Zijin Mining Group | Do Fluoride vs. Wanhua Chemical Group | Do Fluoride vs. Baoshan Iron Steel | Do Fluoride vs. Rongsheng Petrochemical 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 Correlations module to find global opportunities by holding instruments from different markets.
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