Correlation Between Baoshan Iron and Tongling Nonferrous
Specify exactly 2 symbols:
By analyzing existing cross correlation between Baoshan Iron Steel and Tongling Nonferrous Metals, you can compare the effects of market volatilities on Baoshan Iron and Tongling Nonferrous 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 Baoshan Iron with a short position of Tongling Nonferrous. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baoshan Iron and Tongling Nonferrous.
Diversification Opportunities for Baoshan Iron and Tongling Nonferrous
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Baoshan and Tongling is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Baoshan Iron Steel and Tongling Nonferrous Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongling Nonferrous and Baoshan Iron 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 Baoshan Iron Steel are associated (or correlated) with Tongling Nonferrous. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tongling Nonferrous has no effect on the direction of Baoshan Iron i.e., Baoshan Iron and Tongling Nonferrous go up and down completely randomly.
Pair Corralation between Baoshan Iron and Tongling Nonferrous
Assuming the 90 days trading horizon Baoshan Iron Steel is expected to generate 0.86 times more return on investment than Tongling Nonferrous. However, Baoshan Iron Steel is 1.17 times less risky than Tongling Nonferrous. It trades about 0.02 of its potential returns per unit of risk. Tongling Nonferrous Metals is currently generating about 0.01 per unit of risk. If you would invest 601.00 in Baoshan Iron Steel on October 25, 2024 and sell it today you would earn a total of 55.00 from holding Baoshan Iron Steel or generate 9.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Baoshan Iron Steel vs. Tongling Nonferrous Metals
Performance |
| Timeline |
| Baoshan Iron Steel |
| Tongling Nonferrous |
Baoshan Iron and Tongling Nonferrous Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baoshan Iron and Tongling Nonferrous
The main advantage of trading using opposite Baoshan Iron and Tongling Nonferrous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baoshan Iron position performs unexpectedly, Tongling Nonferrous 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 Tongling Nonferrous will offset losses from the drop in Tongling Nonferrous' long position.| Baoshan Iron vs. Tianjin Ruixin Technology | Baoshan Iron vs. Queclink Wireless Solutions | Baoshan Iron vs. Hubei Forbon Technology | Baoshan Iron vs. StarPower Semiconductor |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |