Correlation Between Fujian Newland and Xinjiang Baodi
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By analyzing existing cross correlation between Fujian Newland Computer and Xinjiang Baodi Mining, you can compare the effects of market volatilities on Fujian Newland 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 Fujian Newland with a short position of Xinjiang Baodi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Newland and Xinjiang Baodi.
Diversification Opportunities for Fujian Newland and Xinjiang Baodi
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fujian and Xinjiang is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Newland Computer 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 Fujian Newland 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 Fujian Newland Computer 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 Fujian Newland i.e., Fujian Newland and Xinjiang Baodi go up and down completely randomly.
Pair Corralation between Fujian Newland and Xinjiang Baodi
Assuming the 90 days trading horizon Fujian Newland Computer is expected to generate 0.65 times more return on investment than Xinjiang Baodi. However, Fujian Newland Computer is 1.54 times less risky than Xinjiang Baodi. It trades about 0.13 of its potential returns per unit of risk. Xinjiang Baodi Mining is currently generating about -0.16 per unit of risk. If you would invest 1,897 in Fujian Newland Computer on November 3, 2024 and sell it today you would earn a total of 93.00 from holding Fujian Newland Computer or generate 4.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Newland Computer vs. Xinjiang Baodi Mining
Performance |
| Timeline |
| Fujian Newland Computer |
| Xinjiang Baodi Mining |
Fujian Newland and Xinjiang Baodi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Newland and Xinjiang Baodi
The main advantage of trading using opposite Fujian Newland and Xinjiang Baodi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Newland 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.| Fujian Newland vs. Industrial and Commercial | Fujian Newland vs. China Construction Bank | Fujian Newland vs. Agricultural Bank of | Fujian Newland vs. Bank of China |
| 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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