Correlation Between Zhejiang Kingland and Baoshan Iron
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By analyzing existing cross correlation between Zhejiang Kingland Pipeline and Baoshan Iron Steel, you can compare the effects of market volatilities on Zhejiang Kingland 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 Zhejiang Kingland with a short position of Baoshan Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Kingland and Baoshan Iron.
Diversification Opportunities for Zhejiang Kingland and Baoshan Iron
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Zhejiang and Baoshan is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Kingland Pipeline 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 Zhejiang Kingland 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 Zhejiang Kingland Pipeline 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 Zhejiang Kingland i.e., Zhejiang Kingland and Baoshan Iron go up and down completely randomly.
Pair Corralation between Zhejiang Kingland and Baoshan Iron
Assuming the 90 days trading horizon Zhejiang Kingland Pipeline is expected to generate 0.41 times more return on investment than Baoshan Iron. However, Zhejiang Kingland Pipeline is 2.43 times less risky than Baoshan Iron. It trades about 0.28 of its potential returns per unit of risk. Baoshan Iron Steel is currently generating about 0.05 per unit of risk. If you would invest 563.00 in Zhejiang Kingland Pipeline on November 5, 2024 and sell it today you would earn a total of 20.00 from holding Zhejiang Kingland Pipeline or generate 3.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Kingland Pipeline vs. Baoshan Iron Steel
Performance |
| Timeline |
| Zhejiang Kingland |
| Baoshan Iron Steel |
Zhejiang Kingland and Baoshan Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Kingland and Baoshan Iron
The main advantage of trading using opposite Zhejiang Kingland and Baoshan Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Kingland 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.| Zhejiang Kingland vs. Hefei Metalforming Mach | Zhejiang Kingland vs. Shandong Hongchuang Aluminum | Zhejiang Kingland vs. Xinjiang Baodi Mining | Zhejiang Kingland vs. Ye Chiu Metal |
| Baoshan Iron vs. Eyebright Medical Technology | Baoshan Iron vs. Hainan Mining Co | Baoshan Iron vs. Kontour Medical Technology | Baoshan Iron vs. Guocheng Mining Co |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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