Correlation Between Inner Mongolia and Sichuan Jinshi
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By analyzing existing cross correlation between Inner Mongolia BaoTou and Sichuan Jinshi Technology, you can compare the effects of market volatilities on Inner Mongolia and Sichuan Jinshi 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 Sichuan Jinshi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inner Mongolia and Sichuan Jinshi.
Diversification Opportunities for Inner Mongolia and Sichuan Jinshi
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Inner and Sichuan is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Inner Mongolia BaoTou and Sichuan Jinshi Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Jinshi Technology 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 Sichuan Jinshi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Jinshi Technology has no effect on the direction of Inner Mongolia i.e., Inner Mongolia and Sichuan Jinshi go up and down completely randomly.
Pair Corralation between Inner Mongolia and Sichuan Jinshi
Assuming the 90 days trading horizon Inner Mongolia BaoTou is expected to generate 0.72 times more return on investment than Sichuan Jinshi. However, Inner Mongolia BaoTou is 1.4 times less risky than Sichuan Jinshi. It trades about 0.02 of its potential returns per unit of risk. Sichuan Jinshi Technology is currently generating about -0.01 per unit of risk. If you would invest 181.00 in Inner Mongolia BaoTou on August 31, 2024 and sell it today you would earn a total of 12.00 from holding Inner Mongolia BaoTou or generate 6.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.72% |
| Values | Daily Returns |
Inner Mongolia BaoTou vs. Sichuan Jinshi Technology
Performance |
| Timeline |
| Inner Mongolia BaoTou |
| Sichuan Jinshi Technology |
Inner Mongolia and Sichuan Jinshi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inner Mongolia and Sichuan Jinshi
The main advantage of trading using opposite Inner Mongolia and Sichuan Jinshi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inner Mongolia position performs unexpectedly, Sichuan Jinshi 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 Sichuan Jinshi will offset losses from the drop in Sichuan Jinshi's long position.| Inner Mongolia vs. Guilin Seamild Foods | Inner Mongolia vs. HaiXin Foods Co | Inner Mongolia vs. Great Sun Foods Co | Inner Mongolia vs. Beijing Sanyuan Foods |
| Sichuan Jinshi vs. Guilin Seamild Foods | Sichuan Jinshi vs. Zhengzhou Qianweiyangchu Food | Sichuan Jinshi vs. HaiXin Foods Co | Sichuan Jinshi vs. Ligao Foods CoLtd |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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