Correlation Between Maoming Petro and Xinjiang Baodi
Specify exactly 2 symbols:
By analyzing existing cross correlation between Maoming Petro Chemical Shihua and Xinjiang Baodi Mining, you can compare the effects of market volatilities on Maoming Petro 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 Maoming Petro with a short position of Xinjiang Baodi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maoming Petro and Xinjiang Baodi.
Diversification Opportunities for Maoming Petro and Xinjiang Baodi
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Maoming and Xinjiang is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Maoming Petro Chemical Shihua 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 Maoming Petro 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 Maoming Petro Chemical Shihua 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 Maoming Petro i.e., Maoming Petro and Xinjiang Baodi go up and down completely randomly.
Pair Corralation between Maoming Petro and Xinjiang Baodi
Assuming the 90 days trading horizon Maoming Petro Chemical Shihua is expected to generate 1.17 times more return on investment than Xinjiang Baodi. However, Maoming Petro is 1.17 times more volatile than Xinjiang Baodi Mining. It trades about 0.05 of its potential returns per unit of risk. Xinjiang Baodi Mining is currently generating about 0.05 per unit of risk. If you would invest 353.00 in Maoming Petro Chemical Shihua on September 1, 2024 and sell it today you would earn a total of 47.00 from holding Maoming Petro Chemical Shihua or generate 13.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maoming Petro Chemical Shihua vs. Xinjiang Baodi Mining
Performance |
| Timeline |
| Maoming Petro Chemical |
| Xinjiang Baodi Mining |
Maoming Petro and Xinjiang Baodi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maoming Petro and Xinjiang Baodi
The main advantage of trading using opposite Maoming Petro and Xinjiang Baodi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maoming Petro 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.| Maoming Petro vs. Chongqing Brewery Co | Maoming Petro vs. Changchun Engley Automobile | Maoming Petro vs. Glodon Software Co | Maoming Petro vs. Dhc Software Co |
| Xinjiang Baodi vs. Zijin Mining Group | Xinjiang Baodi vs. Wanhua Chemical Group | Xinjiang Baodi vs. Baoshan Iron Steel | Xinjiang Baodi vs. Shandong Gold Mining |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |