Correlation Between Shantou Wanshun and Xinjiang Baodi
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By analyzing existing cross correlation between Shantou Wanshun Package and Xinjiang Baodi Mining, you can compare the effects of market volatilities on Shantou Wanshun 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 Shantou Wanshun with a short position of Xinjiang Baodi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shantou Wanshun and Xinjiang Baodi.
Diversification Opportunities for Shantou Wanshun and Xinjiang Baodi
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shantou and Xinjiang is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Shantou Wanshun Package 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 Shantou Wanshun 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 Shantou Wanshun Package 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 Shantou Wanshun i.e., Shantou Wanshun and Xinjiang Baodi go up and down completely randomly.
Pair Corralation between Shantou Wanshun and Xinjiang Baodi
Assuming the 90 days trading horizon Shantou Wanshun Package is expected to under-perform the Xinjiang Baodi. But the stock apears to be less risky and, when comparing its historical volatility, Shantou Wanshun Package is 1.18 times less risky than Xinjiang Baodi. The stock trades about -0.45 of its potential returns per unit of risk. The Xinjiang Baodi Mining is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 687.00 in Xinjiang Baodi Mining on October 12, 2024 and sell it today you would lose (16.00) from holding Xinjiang Baodi Mining or give up 2.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shantou Wanshun Package vs. Xinjiang Baodi Mining
Performance |
| Timeline |
| Shantou Wanshun Package |
| Xinjiang Baodi Mining |
Shantou Wanshun and Xinjiang Baodi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shantou Wanshun and Xinjiang Baodi
The main advantage of trading using opposite Shantou Wanshun and Xinjiang Baodi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shantou Wanshun 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.| Shantou Wanshun vs. Guangdong Wens Foodstuff | Shantou Wanshun vs. New Hope Dairy | Shantou Wanshun vs. Anji Foodstuff Co | Shantou Wanshun vs. Beijing Sanyuan Foods |
| Xinjiang Baodi vs. Huasi Agricultural Development | Xinjiang Baodi vs. Fujian Anjoy Foods | Xinjiang Baodi vs. Shantou Wanshun Package | Xinjiang Baodi vs. Long Yuan Construction |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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