Correlation Between CITIC Guoan and Xinjiang Baodi
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By analyzing existing cross correlation between CITIC Guoan Information and Xinjiang Baodi Mining, you can compare the effects of market volatilities on CITIC Guoan 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 CITIC Guoan with a short position of Xinjiang Baodi. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Guoan and Xinjiang Baodi.
Diversification Opportunities for CITIC Guoan and Xinjiang Baodi
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CITIC and Xinjiang is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Guoan Information 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 CITIC Guoan 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 CITIC Guoan Information 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 CITIC Guoan i.e., CITIC Guoan and Xinjiang Baodi go up and down completely randomly.
Pair Corralation between CITIC Guoan and Xinjiang Baodi
Assuming the 90 days trading horizon CITIC Guoan Information is expected to under-perform the Xinjiang Baodi. But the stock apears to be less risky and, when comparing its historical volatility, CITIC Guoan Information is 1.07 times less risky than Xinjiang Baodi. The stock trades about -0.43 of its potential returns per unit of risk. The Xinjiang Baodi Mining is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 662.00 in Xinjiang Baodi Mining on October 10, 2024 and sell it today you would earn a total of 9.00 from holding Xinjiang Baodi Mining or generate 1.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CITIC Guoan Information vs. Xinjiang Baodi Mining
Performance |
| Timeline |
| CITIC Guoan Information |
| Xinjiang Baodi Mining |
CITIC Guoan and Xinjiang Baodi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Guoan and Xinjiang Baodi
The main advantage of trading using opposite CITIC Guoan and Xinjiang Baodi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Guoan 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.| CITIC Guoan vs. Tianshui Huatian Technology | CITIC Guoan vs. XiaMen HongXin Electron tech | CITIC Guoan vs. Dhc Software Co | CITIC Guoan vs. Sinofibers Technology 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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