Correlation Between Baoshan Iron and Hubei Dinglong
Specify exactly 2 symbols:
By analyzing existing cross correlation between Baoshan Iron Steel and Hubei Dinglong Chemical, you can compare the effects of market volatilities on Baoshan Iron and Hubei Dinglong 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 Hubei Dinglong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baoshan Iron and Hubei Dinglong.
Diversification Opportunities for Baoshan Iron and Hubei Dinglong
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Baoshan and Hubei is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Baoshan Iron Steel and Hubei Dinglong Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Dinglong Chemical 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 Hubei Dinglong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Dinglong Chemical has no effect on the direction of Baoshan Iron i.e., Baoshan Iron and Hubei Dinglong go up and down completely randomly.
Pair Corralation between Baoshan Iron and Hubei Dinglong
Assuming the 90 days trading horizon Baoshan Iron Steel is expected to under-perform the Hubei Dinglong. But the stock apears to be less risky and, when comparing its historical volatility, Baoshan Iron Steel is 1.74 times less risky than Hubei Dinglong. The stock trades about -0.15 of its potential returns per unit of risk. The Hubei Dinglong Chemical is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 2,734 in Hubei Dinglong Chemical on August 29, 2024 and sell it today you would lose (75.00) from holding Hubei Dinglong Chemical or give up 2.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baoshan Iron Steel vs. Hubei Dinglong Chemical
Performance |
| Timeline |
| Baoshan Iron Steel |
| Hubei Dinglong Chemical |
Baoshan Iron and Hubei Dinglong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baoshan Iron and Hubei Dinglong
The main advantage of trading using opposite Baoshan Iron and Hubei Dinglong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baoshan Iron position performs unexpectedly, Hubei Dinglong 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 Hubei Dinglong will offset losses from the drop in Hubei Dinglong's long position.| Baoshan Iron vs. Wanhua Chemical Group | Baoshan Iron vs. Shandong Gold Mining | Baoshan Iron vs. Rongsheng Petrochemical Co | Baoshan Iron vs. Inner Mongolia BaoTou |
| Hubei Dinglong vs. Zijin Mining Group | Hubei Dinglong vs. Baoshan Iron Steel | Hubei Dinglong vs. Shandong Gold Mining | Hubei Dinglong 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |