Correlation Between Inner Mongolia and Xian Sunresin
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By analyzing existing cross correlation between Inner Mongolia BaoTou and Xian Sunresin New, you can compare the effects of market volatilities on Inner Mongolia and Xian Sunresin 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 Xian Sunresin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inner Mongolia and Xian Sunresin.
Diversification Opportunities for Inner Mongolia and Xian Sunresin
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Inner and Xian is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Inner Mongolia BaoTou and Xian Sunresin New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xian Sunresin New 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 Xian Sunresin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xian Sunresin New has no effect on the direction of Inner Mongolia i.e., Inner Mongolia and Xian Sunresin go up and down completely randomly.
Pair Corralation between Inner Mongolia and Xian Sunresin
Assuming the 90 days trading horizon Inner Mongolia BaoTou is expected to generate 1.57 times more return on investment than Xian Sunresin. However, Inner Mongolia is 1.57 times more volatile than Xian Sunresin New. It trades about 0.15 of its potential returns per unit of risk. Xian Sunresin New is currently generating about 0.02 per unit of risk. If you would invest 175.00 in Inner Mongolia BaoTou on August 29, 2024 and sell it today you would earn a total of 21.00 from holding Inner Mongolia BaoTou or generate 12.0% 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. Xian Sunresin New
Performance |
| Timeline |
| Inner Mongolia BaoTou |
| Xian Sunresin New |
Inner Mongolia and Xian Sunresin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inner Mongolia and Xian Sunresin
The main advantage of trading using opposite Inner Mongolia and Xian Sunresin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inner Mongolia position performs unexpectedly, Xian Sunresin 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 Xian Sunresin will offset losses from the drop in Xian Sunresin'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 |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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