Correlation Between Imeik Technology and Baoshan Iron
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By analyzing existing cross correlation between Imeik Technology Development and Baoshan Iron Steel, you can compare the effects of market volatilities on Imeik Technology and Baoshan Iron 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 Imeik Technology with a short position of Baoshan Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Imeik Technology and Baoshan Iron.
Diversification Opportunities for Imeik Technology and Baoshan Iron
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Imeik and Baoshan is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Imeik Technology Development and Baoshan Iron Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baoshan Iron Steel and Imeik Technology 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 Imeik Technology Development are associated (or correlated) with Baoshan Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baoshan Iron Steel has no effect on the direction of Imeik Technology i.e., Imeik Technology and Baoshan Iron go up and down completely randomly.
Pair Corralation between Imeik Technology and Baoshan Iron
Assuming the 90 days trading horizon Imeik Technology Development is expected to under-perform the Baoshan Iron. In addition to that, Imeik Technology is 1.67 times more volatile than Baoshan Iron Steel. It trades about -0.34 of its total potential returns per unit of risk. Baoshan Iron Steel is currently generating about -0.1 per unit of volatility. If you would invest 695.00 in Baoshan Iron Steel on October 10, 2024 and sell it today you would lose (23.00) from holding Baoshan Iron Steel or give up 3.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Imeik Technology Development vs. Baoshan Iron Steel
Performance |
| Timeline |
| Imeik Technology Dev |
| Baoshan Iron Steel |
Imeik Technology and Baoshan Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Imeik Technology and Baoshan Iron
The main advantage of trading using opposite Imeik Technology and Baoshan Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Imeik Technology position performs unexpectedly, Baoshan Iron 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 Baoshan Iron will offset losses from the drop in Baoshan Iron's long position.| Imeik Technology vs. Runjian Communication Co | Imeik Technology vs. Dymatic Chemicals | Imeik Technology vs. Do Fluoride Chemicals Co | Imeik Technology vs. Fibocom Wireless |
| Baoshan Iron vs. Suzhou Douson Drilling | Baoshan Iron vs. Union Semiconductor Co | Baoshan Iron vs. Shandong Longquan Pipeline | Baoshan Iron vs. CSSC Offshore Marine |
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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