Correlation Between CIMC Vehicles and Xinjiang Baodi
Specify exactly 2 symbols:
By analyzing existing cross correlation between CIMC Vehicles Co and Xinjiang Baodi Mining, you can compare the effects of market volatilities on CIMC Vehicles 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 CIMC Vehicles with a short position of Xinjiang Baodi. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIMC Vehicles and Xinjiang Baodi.
Diversification Opportunities for CIMC Vehicles and Xinjiang Baodi
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CIMC and Xinjiang is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding CIMC Vehicles Co 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 CIMC Vehicles 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 CIMC Vehicles Co 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 CIMC Vehicles i.e., CIMC Vehicles and Xinjiang Baodi go up and down completely randomly.
Pair Corralation between CIMC Vehicles and Xinjiang Baodi
Assuming the 90 days trading horizon CIMC Vehicles Co is expected to under-perform the Xinjiang Baodi. But the stock apears to be less risky and, when comparing its historical volatility, CIMC Vehicles Co is 1.25 times less risky than Xinjiang Baodi. The stock trades about -0.07 of its potential returns per unit of risk. The Xinjiang Baodi Mining is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 616.00 in Xinjiang Baodi Mining on August 30, 2024 and sell it today you would earn a total of 42.00 from holding Xinjiang Baodi Mining or generate 6.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CIMC Vehicles Co vs. Xinjiang Baodi Mining
Performance |
| Timeline |
| CIMC Vehicles |
| Xinjiang Baodi Mining |
CIMC Vehicles and Xinjiang Baodi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CIMC Vehicles and Xinjiang Baodi
The main advantage of trading using opposite CIMC Vehicles and Xinjiang Baodi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIMC Vehicles 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.| CIMC Vehicles vs. Agricultural Bank of | CIMC Vehicles vs. Industrial and Commercial | CIMC Vehicles vs. Bank of China | CIMC Vehicles 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Commodity Directory Find actively traded commodities issued by global exchanges |