Correlation Between Inner Mongolia and Xiangtan Electrochemical
Specify exactly 2 symbols:
By analyzing existing cross correlation between Inner Mongolia BaoTou and Xiangtan Electrochemical Scientific, you can compare the effects of market volatilities on Inner Mongolia and Xiangtan Electrochemical 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 Xiangtan Electrochemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inner Mongolia and Xiangtan Electrochemical.
Diversification Opportunities for Inner Mongolia and Xiangtan Electrochemical
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Inner and Xiangtan is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Inner Mongolia BaoTou and Xiangtan Electrochemical Scien in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangtan Electrochemical 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 Xiangtan Electrochemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiangtan Electrochemical has no effect on the direction of Inner Mongolia i.e., Inner Mongolia and Xiangtan Electrochemical go up and down completely randomly.
Pair Corralation between Inner Mongolia and Xiangtan Electrochemical
Assuming the 90 days trading horizon Inner Mongolia is expected to generate 1.32 times less return on investment than Xiangtan Electrochemical. But when comparing it to its historical volatility, Inner Mongolia BaoTou is 1.28 times less risky than Xiangtan Electrochemical. It trades about 0.16 of its potential returns per unit of risk. Xiangtan Electrochemical Scientific is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,008 in Xiangtan Electrochemical Scientific on November 28, 2024 and sell it today you would earn a total of 52.00 from holding Xiangtan Electrochemical Scientific or generate 5.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inner Mongolia BaoTou vs. Xiangtan Electrochemical Scien
Performance |
| Timeline |
| Inner Mongolia BaoTou |
| Xiangtan Electrochemical |
Inner Mongolia and Xiangtan Electrochemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inner Mongolia and Xiangtan Electrochemical
The main advantage of trading using opposite Inner Mongolia and Xiangtan Electrochemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inner Mongolia position performs unexpectedly, Xiangtan Electrochemical 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 Xiangtan Electrochemical will offset losses from the drop in Xiangtan Electrochemical's long position.| Inner Mongolia vs. Guangzhou Ruoyuchen Information | Inner Mongolia vs. Dymatic Chemicals | Inner Mongolia vs. Sportsoul Co Ltd | Inner Mongolia vs. Jiangsu Jinling Sports |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |