Correlation Between Shenyang Blue and Xinjiang Baodi
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By analyzing existing cross correlation between Shenyang Blue Silver and Xinjiang Baodi Mining, you can compare the effects of market volatilities on Shenyang Blue 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 Shenyang Blue with a short position of Xinjiang Baodi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Blue and Xinjiang Baodi.
Diversification Opportunities for Shenyang Blue and Xinjiang Baodi
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shenyang and Xinjiang is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Blue Silver 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 Shenyang Blue 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 Shenyang Blue Silver 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 Shenyang Blue i.e., Shenyang Blue and Xinjiang Baodi go up and down completely randomly.
Pair Corralation between Shenyang Blue and Xinjiang Baodi
Assuming the 90 days trading horizon Shenyang Blue Silver is expected to generate 2.07 times more return on investment than Xinjiang Baodi. However, Shenyang Blue is 2.07 times more volatile than Xinjiang Baodi Mining. It trades about 0.07 of its potential returns per unit of risk. Xinjiang Baodi Mining is currently generating about -0.01 per unit of risk. If you would invest 979.00 in Shenyang Blue Silver on October 16, 2024 and sell it today you would earn a total of 1,316 from holding Shenyang Blue Silver or generate 134.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Blue Silver vs. Xinjiang Baodi Mining
Performance |
| Timeline |
| Shenyang Blue Silver |
| Xinjiang Baodi Mining |
Shenyang Blue and Xinjiang Baodi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Blue and Xinjiang Baodi
The main advantage of trading using opposite Shenyang Blue and Xinjiang Baodi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Blue 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.| Shenyang Blue vs. Songz Automobile Air | Shenyang Blue vs. Tongyu Communication | Shenyang Blue vs. Gansu Huangtai Wine marketing | Shenyang Blue vs. Ningbo Fangzheng Automobile |
| Xinjiang Baodi vs. Eastroc Beverage Group | Xinjiang Baodi vs. Shengda Mining Co | Xinjiang Baodi vs. Zhengzhou Coal Mining | Xinjiang Baodi vs. Shenyang Blue Silver |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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