Correlation Between Inner Mongolia and Xinjiang Zhongtai
Specify exactly 2 symbols:
By analyzing existing cross correlation between Inner Mongolia BaoTou and Xinjiang Zhongtai Chemical, you can compare the effects of market volatilities on Inner Mongolia and Xinjiang Zhongtai 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 Inner Mongolia with a short position of Xinjiang Zhongtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inner Mongolia and Xinjiang Zhongtai.
Diversification Opportunities for Inner Mongolia and Xinjiang Zhongtai
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Inner and Xinjiang is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Inner Mongolia BaoTou and Xinjiang Zhongtai Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Zhongtai and Inner Mongolia 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 Inner Mongolia BaoTou are associated (or correlated) with Xinjiang Zhongtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Zhongtai has no effect on the direction of Inner Mongolia i.e., Inner Mongolia and Xinjiang Zhongtai go up and down completely randomly.
Pair Corralation between Inner Mongolia and Xinjiang Zhongtai
Assuming the 90 days trading horizon Inner Mongolia is expected to generate 1.73 times less return on investment than Xinjiang Zhongtai. In addition to that, Inner Mongolia is 1.45 times more volatile than Xinjiang Zhongtai Chemical. It trades about 0.11 of its total potential returns per unit of risk. Xinjiang Zhongtai Chemical is currently generating about 0.28 per unit of volatility. If you would invest 406.00 in Xinjiang Zhongtai Chemical on September 5, 2024 and sell it today you would earn a total of 62.00 from holding Xinjiang Zhongtai Chemical or generate 15.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inner Mongolia BaoTou vs. Xinjiang Zhongtai Chemical
Performance |
| Timeline |
| Inner Mongolia BaoTou |
| Xinjiang Zhongtai |
Inner Mongolia and Xinjiang Zhongtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inner Mongolia and Xinjiang Zhongtai
The main advantage of trading using opposite Inner Mongolia and Xinjiang Zhongtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inner Mongolia position performs unexpectedly, Xinjiang Zhongtai 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 Zhongtai will offset losses from the drop in Xinjiang Zhongtai's long position.| Inner Mongolia vs. Northking Information Technology | Inner Mongolia vs. ROPEOK Technology Group | Inner Mongolia vs. Guangzhou KingTeller Technology | Inner Mongolia vs. Xiamen Goldenhome Co |
| Xinjiang Zhongtai vs. Zijin Mining Group | Xinjiang Zhongtai vs. Wanhua Chemical Group | Xinjiang Zhongtai vs. Baoshan Iron Steel | Xinjiang Zhongtai 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |