Correlation Between CNPC Capital and Xinjiang Baodi
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By analyzing existing cross correlation between CNPC Capital Co and Xinjiang Baodi Mining, you can compare the effects of market volatilities on CNPC Capital and Xinjiang Baodi 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 CNPC Capital with a short position of Xinjiang Baodi. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNPC Capital and Xinjiang Baodi.
Diversification Opportunities for CNPC Capital and Xinjiang Baodi
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CNPC and Xinjiang is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding CNPC Capital Co and Xinjiang Baodi Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Baodi Mining and CNPC Capital 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 CNPC Capital Co are associated (or correlated) with Xinjiang Baodi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Baodi Mining has no effect on the direction of CNPC Capital i.e., CNPC Capital and Xinjiang Baodi go up and down completely randomly.
Pair Corralation between CNPC Capital and Xinjiang Baodi
Assuming the 90 days trading horizon CNPC Capital Co is expected to generate 1.02 times more return on investment than Xinjiang Baodi. However, CNPC Capital is 1.02 times more volatile than Xinjiang Baodi Mining. It trades about 0.02 of its potential returns per unit of risk. Xinjiang Baodi Mining is currently generating about 0.02 per unit of risk. If you would invest 574.00 in CNPC Capital Co on October 16, 2024 and sell it today you would earn a total of 70.00 from holding CNPC Capital Co or generate 12.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 93.93% |
| Values | Daily Returns |
CNPC Capital Co vs. Xinjiang Baodi Mining
Performance |
| Timeline |
| CNPC Capital |
| Xinjiang Baodi Mining |
CNPC Capital and Xinjiang Baodi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNPC Capital and Xinjiang Baodi
The main advantage of trading using opposite CNPC Capital and Xinjiang Baodi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNPC Capital position performs unexpectedly, Xinjiang Baodi 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 Xinjiang Baodi will offset losses from the drop in Xinjiang Baodi's long position.| CNPC Capital vs. Xinjiang Baodi Mining | CNPC Capital vs. Chengtun Mining Group | CNPC Capital vs. Zoje Resources Investment | CNPC Capital vs. Jointo Energy Investment |
| Xinjiang Baodi vs. Chongqing Shunbo Aluminum | Xinjiang Baodi vs. Yindu Kitchen Equipment | Xinjiang Baodi vs. China Aluminum International | Xinjiang Baodi vs. Rising Nonferrous Metals |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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