Correlation Between Guangzhou Haozhi and Xinjiang Baodi
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By analyzing existing cross correlation between Guangzhou Haozhi Industrial and Xinjiang Baodi Mining, you can compare the effects of market volatilities on Guangzhou Haozhi 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 Guangzhou Haozhi with a short position of Xinjiang Baodi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haozhi and Xinjiang Baodi.
Diversification Opportunities for Guangzhou Haozhi and Xinjiang Baodi
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Xinjiang is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haozhi Industrial 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 Guangzhou Haozhi 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 Guangzhou Haozhi Industrial 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 Guangzhou Haozhi i.e., Guangzhou Haozhi and Xinjiang Baodi go up and down completely randomly.
Pair Corralation between Guangzhou Haozhi and Xinjiang Baodi
Assuming the 90 days trading horizon Guangzhou Haozhi Industrial is expected to generate 1.65 times more return on investment than Xinjiang Baodi. However, Guangzhou Haozhi is 1.65 times more volatile than Xinjiang Baodi Mining. It trades about 0.04 of its potential returns per unit of risk. Xinjiang Baodi Mining is currently generating about 0.0 per unit of risk. If you would invest 1,502 in Guangzhou Haozhi Industrial on August 25, 2024 and sell it today you would earn a total of 274.00 from holding Guangzhou Haozhi Industrial or generate 18.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Haozhi Industrial vs. Xinjiang Baodi Mining
Performance |
| Timeline |
| Guangzhou Haozhi Ind |
| Xinjiang Baodi Mining |
Guangzhou Haozhi and Xinjiang Baodi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haozhi and Xinjiang Baodi
The main advantage of trading using opposite Guangzhou Haozhi and Xinjiang Baodi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haozhi 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.| Guangzhou Haozhi vs. Biwin Storage Technology | Guangzhou Haozhi vs. PetroChina Co Ltd | Guangzhou Haozhi vs. Industrial and Commercial | Guangzhou Haozhi vs. China Construction Bank |
| Xinjiang Baodi vs. Zijin Mining Group | Xinjiang Baodi vs. Wanhua Chemical Group | Xinjiang Baodi vs. Baoshan Iron Steel | Xinjiang Baodi vs. Shandong Gold Mining |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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