Correlation Between Baoshan Iron and Jiangxi Selon
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By analyzing existing cross correlation between Baoshan Iron Steel and Jiangxi Selon Industrial, you can compare the effects of market volatilities on Baoshan Iron and Jiangxi Selon 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 Jiangxi Selon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baoshan Iron and Jiangxi Selon.
Diversification Opportunities for Baoshan Iron and Jiangxi Selon
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Baoshan and Jiangxi is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Baoshan Iron Steel and Jiangxi Selon Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Selon Industrial 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 Jiangxi Selon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Selon Industrial has no effect on the direction of Baoshan Iron i.e., Baoshan Iron and Jiangxi Selon go up and down completely randomly.
Pair Corralation between Baoshan Iron and Jiangxi Selon
Assuming the 90 days trading horizon Baoshan Iron Steel is expected to generate 0.49 times more return on investment than Jiangxi Selon. However, Baoshan Iron Steel is 2.04 times less risky than Jiangxi Selon. It trades about 0.03 of its potential returns per unit of risk. Jiangxi Selon Industrial is currently generating about 0.01 per unit of risk. If you would invest 617.00 in Baoshan Iron Steel on September 12, 2024 and sell it today you would earn a total of 74.00 from holding Baoshan Iron Steel or generate 11.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baoshan Iron Steel vs. Jiangxi Selon Industrial
Performance |
| Timeline |
| Baoshan Iron Steel |
| Jiangxi Selon Industrial |
Baoshan Iron and Jiangxi Selon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baoshan Iron and Jiangxi Selon
The main advantage of trading using opposite Baoshan Iron and Jiangxi Selon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baoshan Iron position performs unexpectedly, Jiangxi Selon 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 Jiangxi Selon will offset losses from the drop in Jiangxi Selon's long position.| Baoshan Iron vs. Zijin Mining Group | Baoshan Iron vs. Wanhua Chemical Group | Baoshan Iron vs. Rongsheng Petrochemical Co | Baoshan Iron vs. Hoshine Silicon Ind |
| Jiangxi Selon vs. Zijin Mining Group | Jiangxi Selon vs. Wanhua Chemical Group | Jiangxi Selon vs. Baoshan Iron Steel | Jiangxi Selon vs. Rongsheng Petrochemical Co |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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