Correlation Between Hithink RoyalFlush and Xinjiang Baodi
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By analyzing existing cross correlation between Hithink RoyalFlush Info and Xinjiang Baodi Mining, you can compare the effects of market volatilities on Hithink RoyalFlush 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 Hithink RoyalFlush with a short position of Xinjiang Baodi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hithink RoyalFlush and Xinjiang Baodi.
Diversification Opportunities for Hithink RoyalFlush and Xinjiang Baodi
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hithink and Xinjiang is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Hithink RoyalFlush Info 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 Hithink RoyalFlush 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 Hithink RoyalFlush Info 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 Hithink RoyalFlush i.e., Hithink RoyalFlush and Xinjiang Baodi go up and down completely randomly.
Pair Corralation between Hithink RoyalFlush and Xinjiang Baodi
Assuming the 90 days trading horizon Hithink RoyalFlush Info is expected to generate 2.88 times more return on investment than Xinjiang Baodi. However, Hithink RoyalFlush is 2.88 times more volatile than Xinjiang Baodi Mining. It trades about 0.23 of its potential returns per unit of risk. Xinjiang Baodi Mining is currently generating about 0.07 per unit of risk. If you would invest 20,088 in Hithink RoyalFlush Info on August 29, 2024 and sell it today you would earn a total of 8,333 from holding Hithink RoyalFlush Info or generate 41.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hithink RoyalFlush Info vs. Xinjiang Baodi Mining
Performance |
| Timeline |
| Hithink RoyalFlush Info |
| Xinjiang Baodi Mining |
Hithink RoyalFlush and Xinjiang Baodi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hithink RoyalFlush and Xinjiang Baodi
The main advantage of trading using opposite Hithink RoyalFlush and Xinjiang Baodi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hithink RoyalFlush 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.| Hithink RoyalFlush vs. Xinjiang Baodi Mining | Hithink RoyalFlush vs. Lander Sports Development | Hithink RoyalFlush vs. Ye Chiu Metal | Hithink RoyalFlush vs. Inly Media Co |
| Xinjiang Baodi vs. Wanhua Chemical Group | Xinjiang Baodi vs. Baoshan Iron Steel | Xinjiang Baodi vs. Shandong Gold Mining | 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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