Correlation Between Zhejiang Kingland and Xinjiang Baodi
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By analyzing existing cross correlation between Zhejiang Kingland Pipeline and Xinjiang Baodi Mining, you can compare the effects of market volatilities on Zhejiang Kingland 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 Zhejiang Kingland with a short position of Xinjiang Baodi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Kingland and Xinjiang Baodi.
Diversification Opportunities for Zhejiang Kingland and Xinjiang Baodi
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Zhejiang and Xinjiang is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Kingland Pipeline 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 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 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 Zhejiang Kingland i.e., Zhejiang Kingland and Xinjiang Baodi go up and down completely randomly.
Pair Corralation between Zhejiang Kingland and Xinjiang Baodi
Assuming the 90 days trading horizon Zhejiang Kingland is expected to generate 1.2 times less return on investment than Xinjiang Baodi. But when comparing it to its historical volatility, Zhejiang Kingland Pipeline is 1.17 times less risky than Xinjiang Baodi. It trades about 0.04 of its potential returns per unit of risk. Xinjiang Baodi Mining is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 561.00 in Xinjiang Baodi Mining on October 25, 2024 and sell it today you would earn a total of 51.00 from holding Xinjiang Baodi Mining or generate 9.09% 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. Xinjiang Baodi Mining
Performance |
| Timeline |
| Zhejiang Kingland |
| Xinjiang Baodi Mining |
Zhejiang Kingland and Xinjiang Baodi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Kingland and Xinjiang Baodi
The main advantage of trading using opposite Zhejiang Kingland and Xinjiang Baodi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Kingland 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.| Zhejiang Kingland vs. Gansu Jiu Steel | Zhejiang Kingland vs. Ming Yang Smart | Zhejiang Kingland vs. Aba Chemicals Corp | Zhejiang Kingland vs. Loctek Ergonomic Technology |
| Xinjiang Baodi vs. Zijin Mining Group | Xinjiang Baodi vs. Wanhua Chemical Group | Xinjiang Baodi vs. Baoshan Iron Steel | Xinjiang Baodi vs. Rongsheng Petrochemical 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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