Correlation Between Yunnan Xiyi and Xinjiang Baodi
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By analyzing existing cross correlation between Yunnan Xiyi Industrial and Xinjiang Baodi Mining, you can compare the effects of market volatilities on Yunnan Xiyi 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 Yunnan Xiyi with a short position of Xinjiang Baodi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunnan Xiyi and Xinjiang Baodi.
Diversification Opportunities for Yunnan Xiyi and Xinjiang Baodi
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Yunnan and Xinjiang is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Yunnan Xiyi Industrial 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 Yunnan Xiyi 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 Yunnan Xiyi Industrial 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 Yunnan Xiyi i.e., Yunnan Xiyi and Xinjiang Baodi go up and down completely randomly.
Pair Corralation between Yunnan Xiyi and Xinjiang Baodi
Assuming the 90 days trading horizon Yunnan Xiyi Industrial is expected to under-perform the Xinjiang Baodi. But the stock apears to be less risky and, when comparing its historical volatility, Yunnan Xiyi Industrial is 1.11 times less risky than Xinjiang Baodi. The stock trades about -0.01 of its potential returns per unit of risk. The Xinjiang Baodi Mining is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 604.00 in Xinjiang Baodi Mining on September 3, 2024 and sell it today you would earn a total of 67.00 from holding Xinjiang Baodi Mining or generate 11.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 88.05% |
| Values | Daily Returns |
Yunnan Xiyi Industrial vs. Xinjiang Baodi Mining
Performance |
| Timeline |
| Yunnan Xiyi Industrial |
| Xinjiang Baodi Mining |
Yunnan Xiyi and Xinjiang Baodi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunnan Xiyi and Xinjiang Baodi
The main advantage of trading using opposite Yunnan Xiyi and Xinjiang Baodi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunnan Xiyi 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.| Yunnan Xiyi vs. Anhui Huilong Agricultural | Yunnan Xiyi vs. Huasi Agricultural Development | Yunnan Xiyi vs. Shantui Construction Machinery | Yunnan Xiyi vs. Sinomach General Machinery |
| Xinjiang Baodi vs. Zijin Mining Group | Xinjiang Baodi vs. Baoshan Iron Steel | Xinjiang Baodi vs. Rongsheng Petrochemical Co | Xinjiang Baodi vs. Hoshine Silicon Ind |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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