Correlation Between Jiangsu Jinling and Xinjiang Baodi
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By analyzing existing cross correlation between Jiangsu Jinling Sports and Xinjiang Baodi Mining, you can compare the effects of market volatilities on Jiangsu Jinling 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 Jiangsu Jinling with a short position of Xinjiang Baodi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Jinling and Xinjiang Baodi.
Diversification Opportunities for Jiangsu Jinling and Xinjiang Baodi
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangsu and Xinjiang is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Jinling Sports 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 Jiangsu Jinling 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 Jiangsu Jinling Sports 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 Jiangsu Jinling i.e., Jiangsu Jinling and Xinjiang Baodi go up and down completely randomly.
Pair Corralation between Jiangsu Jinling and Xinjiang Baodi
Assuming the 90 days trading horizon Jiangsu Jinling Sports is expected to generate 1.38 times more return on investment than Xinjiang Baodi. However, Jiangsu Jinling is 1.38 times more volatile than Xinjiang Baodi Mining. It trades about 0.03 of its potential returns per unit of risk. Xinjiang Baodi Mining is currently generating about 0.02 per unit of risk. If you would invest 1,428 in Jiangsu Jinling Sports on September 3, 2024 and sell it today you would earn a total of 81.00 from holding Jiangsu Jinling Sports or generate 5.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Jinling Sports vs. Xinjiang Baodi Mining
Performance |
| Timeline |
| Jiangsu Jinling Sports |
| Xinjiang Baodi Mining |
Jiangsu Jinling and Xinjiang Baodi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Jinling and Xinjiang Baodi
The main advantage of trading using opposite Jiangsu Jinling and Xinjiang Baodi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Jinling 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.| Jiangsu Jinling vs. PetroChina Co Ltd | Jiangsu Jinling vs. China Mobile Limited | Jiangsu Jinling vs. Industrial and Commercial | Jiangsu Jinling vs. China Life Insurance |
| Xinjiang Baodi vs. Zijin Mining Group | Xinjiang Baodi vs. Baoshan Iron Steel | Xinjiang Baodi vs. Rongsheng Petrochemical Co | Xinjiang Baodi vs. Hoshine Silicon Ind |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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