Correlation Between Shenzhen Noposion and Baoshan Iron
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By analyzing existing cross correlation between Shenzhen Noposion Agrochemicals and Baoshan Iron Steel, you can compare the effects of market volatilities on Shenzhen Noposion and Baoshan Iron 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 Shenzhen Noposion with a short position of Baoshan Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Noposion and Baoshan Iron.
Diversification Opportunities for Shenzhen Noposion and Baoshan Iron
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shenzhen and Baoshan is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Noposion Agrochemical and Baoshan Iron Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baoshan Iron Steel and Shenzhen Noposion 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 Shenzhen Noposion Agrochemicals are associated (or correlated) with Baoshan Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baoshan Iron Steel has no effect on the direction of Shenzhen Noposion i.e., Shenzhen Noposion and Baoshan Iron go up and down completely randomly.
Pair Corralation between Shenzhen Noposion and Baoshan Iron
Assuming the 90 days trading horizon Shenzhen Noposion Agrochemicals is expected to under-perform the Baoshan Iron. In addition to that, Shenzhen Noposion is 1.24 times more volatile than Baoshan Iron Steel. It trades about -0.16 of its total potential returns per unit of risk. Baoshan Iron Steel is currently generating about 0.19 per unit of volatility. If you would invest 655.00 in Baoshan Iron Steel on December 11, 2024 and sell it today you would earn a total of 83.00 from holding Baoshan Iron Steel or generate 12.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Noposion Agrochemical vs. Baoshan Iron Steel
Performance |
| Timeline |
| Shenzhen Noposion |
| Baoshan Iron Steel |
Shenzhen Noposion and Baoshan Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Noposion and Baoshan Iron
The main advantage of trading using opposite Shenzhen Noposion and Baoshan Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Noposion position performs unexpectedly, Baoshan Iron 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 Baoshan Iron will offset losses from the drop in Baoshan Iron's long position.| Shenzhen Noposion vs. Wondershare Technology Co | Shenzhen Noposion vs. Zotye Automobile Co | Shenzhen Noposion vs. Smartgiant Technology Co | Shenzhen Noposion vs. Xiangyang Automobile Bearing |
| Baoshan Iron vs. Shuhua Sports Co | Baoshan Iron vs. Weihai Honglin Electronic | Baoshan Iron vs. Aurora Optoelectronics Co | Baoshan Iron vs. Jiangsu Jinling Sports |
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 Stocks Directory module to find actively traded stocks across global markets.
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