Correlation Between Inner Mongolia and Xiamen Jihong
Specify exactly 2 symbols:
By analyzing existing cross correlation between Inner Mongolia BaoTou and Xiamen Jihong Package, you can compare the effects of market volatilities on Inner Mongolia and Xiamen Jihong 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 Xiamen Jihong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inner Mongolia and Xiamen Jihong.
Diversification Opportunities for Inner Mongolia and Xiamen Jihong
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Inner and Xiamen is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Inner Mongolia BaoTou and Xiamen Jihong Package in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Jihong Package 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 Xiamen Jihong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Jihong Package has no effect on the direction of Inner Mongolia i.e., Inner Mongolia and Xiamen Jihong go up and down completely randomly.
Pair Corralation between Inner Mongolia and Xiamen Jihong
Assuming the 90 days trading horizon Inner Mongolia is expected to generate 1.42 times less return on investment than Xiamen Jihong. In addition to that, Inner Mongolia is 1.18 times more volatile than Xiamen Jihong Package. It trades about 0.16 of its total potential returns per unit of risk. Xiamen Jihong Package is currently generating about 0.27 per unit of volatility. If you would invest 1,271 in Xiamen Jihong Package on August 28, 2024 and sell it today you would earn a total of 272.00 from holding Xiamen Jihong Package or generate 21.4% 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. Xiamen Jihong Package
Performance |
| Timeline |
| Inner Mongolia BaoTou |
| Xiamen Jihong Package |
Inner Mongolia and Xiamen Jihong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inner Mongolia and Xiamen Jihong
The main advantage of trading using opposite Inner Mongolia and Xiamen Jihong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inner Mongolia position performs unexpectedly, Xiamen Jihong 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 Xiamen Jihong will offset losses from the drop in Xiamen Jihong's long position.| Inner Mongolia vs. Xiangyang Automobile Bearing | Inner Mongolia vs. Heren Health Co | Inner Mongolia vs. Sinomach Automobile Co | Inner Mongolia vs. Anhui Jianghuai Automobile |
| Xiamen Jihong vs. Zijin Mining Group | Xiamen Jihong vs. Wanhua Chemical Group | Xiamen Jihong vs. Baoshan Iron Steel | Xiamen Jihong 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |