Correlation Between Baoshan Iron and CSG Holding
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By analyzing existing cross correlation between Baoshan Iron Steel and CSG Holding Co, you can compare the effects of market volatilities on Baoshan Iron and CSG Holding 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 CSG Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baoshan Iron and CSG Holding.
Diversification Opportunities for Baoshan Iron and CSG Holding
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Baoshan and CSG is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Baoshan Iron Steel and CSG Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSG Holding 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 CSG Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSG Holding has no effect on the direction of Baoshan Iron i.e., Baoshan Iron and CSG Holding go up and down completely randomly.
Pair Corralation between Baoshan Iron and CSG Holding
Assuming the 90 days trading horizon Baoshan Iron Steel is expected to under-perform the CSG Holding. In addition to that, Baoshan Iron is 1.85 times more volatile than CSG Holding Co. It trades about -0.14 of its total potential returns per unit of risk. CSG Holding Co is currently generating about -0.19 per unit of volatility. If you would invest 231.00 in CSG Holding Co on October 16, 2024 and sell it today you would lose (7.00) from holding CSG Holding Co or give up 3.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baoshan Iron Steel vs. CSG Holding Co
Performance |
| Timeline |
| Baoshan Iron Steel |
| CSG Holding |
Baoshan Iron and CSG Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baoshan Iron and CSG Holding
The main advantage of trading using opposite Baoshan Iron and CSG Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baoshan Iron position performs unexpectedly, CSG Holding 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 CSG Holding will offset losses from the drop in CSG Holding's long position.| Baoshan Iron vs. Fujian Nanwang Environment | Baoshan Iron vs. Shandong Iron and | Baoshan Iron vs. Holitech Technology Co | Baoshan Iron vs. Qiaoyin Environmental Tech |
| CSG Holding vs. Xinjiang Tianrun Dairy | CSG Holding vs. Peoples Insurance of | CSG Holding vs. Zhejiang Yinlun Machinery | CSG Holding vs. Gifore Agricultural Machinery |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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