Correlation Between Baoshan Iron and Konfoong Materials
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By analyzing existing cross correlation between Baoshan Iron Steel and Konfoong Materials International, you can compare the effects of market volatilities on Baoshan Iron and Konfoong Materials 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 Konfoong Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baoshan Iron and Konfoong Materials.
Diversification Opportunities for Baoshan Iron and Konfoong Materials
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Baoshan and Konfoong is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Baoshan Iron Steel and Konfoong Materials Internation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Konfoong Materials 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 Konfoong Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Konfoong Materials has no effect on the direction of Baoshan Iron i.e., Baoshan Iron and Konfoong Materials go up and down completely randomly.
Pair Corralation between Baoshan Iron and Konfoong Materials
Assuming the 90 days trading horizon Baoshan Iron Steel is expected to generate 0.6 times more return on investment than Konfoong Materials. However, Baoshan Iron Steel is 1.66 times less risky than Konfoong Materials. It trades about -0.1 of its potential returns per unit of risk. Konfoong Materials International is currently generating about -0.2 per unit of risk. If you would invest 695.00 in Baoshan Iron Steel on October 10, 2024 and sell it today you would lose (23.00) from holding Baoshan Iron Steel or give up 3.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baoshan Iron Steel vs. Konfoong Materials Internation
Performance |
| Timeline |
| Baoshan Iron Steel |
| Konfoong Materials |
Baoshan Iron and Konfoong Materials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baoshan Iron and Konfoong Materials
The main advantage of trading using opposite Baoshan Iron and Konfoong Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baoshan Iron position performs unexpectedly, Konfoong Materials 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 Konfoong Materials will offset losses from the drop in Konfoong Materials' long position.| Baoshan Iron vs. Suzhou Douson Drilling | Baoshan Iron vs. Union Semiconductor Co | Baoshan Iron vs. Shandong Longquan Pipeline | Baoshan Iron vs. CSSC Offshore Marine |
| Konfoong Materials vs. Shenzhen SDG Information | Konfoong Materials vs. Xinhua Winshare Publishing | Konfoong Materials vs. Longmaster Information Tech | Konfoong Materials vs. Jiangsu Yanghe Brewery |
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 Stocks Directory module to find actively traded stocks across global markets.
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