Correlation Between Baoshan Iron and Jinsanjiang Silicon
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By analyzing existing cross correlation between Baoshan Iron Steel and Jinsanjiang Silicon Material, you can compare the effects of market volatilities on Baoshan Iron and Jinsanjiang Silicon 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 Jinsanjiang Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baoshan Iron and Jinsanjiang Silicon.
Diversification Opportunities for Baoshan Iron and Jinsanjiang Silicon
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Baoshan and Jinsanjiang is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Baoshan Iron Steel and Jinsanjiang Silicon Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinsanjiang Silicon 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 Jinsanjiang Silicon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinsanjiang Silicon has no effect on the direction of Baoshan Iron i.e., Baoshan Iron and Jinsanjiang Silicon go up and down completely randomly.
Pair Corralation between Baoshan Iron and Jinsanjiang Silicon
Assuming the 90 days trading horizon Baoshan Iron Steel is expected to under-perform the Jinsanjiang Silicon. But the stock apears to be less risky and, when comparing its historical volatility, Baoshan Iron Steel is 1.98 times less risky than Jinsanjiang Silicon. The stock trades about -0.02 of its potential returns per unit of risk. The Jinsanjiang Silicon Material is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,117 in Jinsanjiang Silicon Material on September 2, 2024 and sell it today you would earn a total of 34.00 from holding Jinsanjiang Silicon Material or generate 3.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baoshan Iron Steel vs. Jinsanjiang Silicon Material
Performance |
| Timeline |
| Baoshan Iron Steel |
| Jinsanjiang Silicon |
Baoshan Iron and Jinsanjiang Silicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baoshan Iron and Jinsanjiang Silicon
The main advantage of trading using opposite Baoshan Iron and Jinsanjiang Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baoshan Iron position performs unexpectedly, Jinsanjiang Silicon 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 Jinsanjiang Silicon will offset losses from the drop in Jinsanjiang Silicon's long position.| Baoshan Iron vs. Zijin Mining Group | Baoshan Iron vs. Wanhua Chemical Group | Baoshan Iron vs. Shandong Gold Mining | Baoshan Iron vs. Rongsheng Petrochemical Co |
| Jinsanjiang Silicon vs. Hefei Metalforming Mach | Jinsanjiang Silicon vs. Shanghai Shuixing Home | Jinsanjiang Silicon vs. Suofeiya Home Collection | Jinsanjiang Silicon vs. Mengtian Home Group |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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