Correlation Between Gansu Yasheng and Shandong Gold
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By analyzing existing cross correlation between Gansu Yasheng Industrial and Shandong Gold Mining, you can compare the effects of market volatilities on Gansu Yasheng 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 Gansu Yasheng with a short position of Shandong Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Yasheng and Shandong Gold.
Diversification Opportunities for Gansu Yasheng and Shandong Gold
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gansu and Shandong is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Yasheng 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 Gansu Yasheng 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 Gansu Yasheng 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 Gansu Yasheng i.e., Gansu Yasheng and Shandong Gold go up and down completely randomly.
Pair Corralation between Gansu Yasheng and Shandong Gold
Assuming the 90 days trading horizon Gansu Yasheng Industrial is expected to generate 1.44 times more return on investment than Shandong Gold. However, Gansu Yasheng is 1.44 times more volatile than Shandong Gold Mining. It trades about 0.16 of its potential returns per unit of risk. Shandong Gold Mining is currently generating about -0.11 per unit of risk. If you would invest 235.00 in Gansu Yasheng Industrial on September 23, 2024 and sell it today you would earn a total of 65.00 from holding Gansu Yasheng Industrial or generate 27.66% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Gansu Yasheng Industrial vs. Shandong Gold Mining
Performance |
Timeline |
Gansu Yasheng Industrial |
Shandong Gold Mining |
Gansu Yasheng and Shandong Gold Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gansu Yasheng and Shandong Gold
The main advantage of trading using opposite Gansu Yasheng and Shandong Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Yasheng 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.Gansu Yasheng vs. Industrial and Commercial | Gansu Yasheng vs. China Construction Bank | Gansu Yasheng vs. Agricultural Bank of | Gansu Yasheng vs. Bank of China |
Shandong Gold vs. Western Metal Materials | Shandong Gold vs. Jiangsu Financial Leasing | Shandong Gold vs. Gansu Yasheng Industrial | Shandong Gold vs. Hainan Mining 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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