Correlation Between Baoshan Iron and Fujian Nanwang
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By analyzing existing cross correlation between Baoshan Iron Steel and Fujian Nanwang Environment, you can compare the effects of market volatilities on Baoshan Iron and Fujian Nanwang 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 Fujian Nanwang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baoshan Iron and Fujian Nanwang.
Diversification Opportunities for Baoshan Iron and Fujian Nanwang
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Baoshan and Fujian is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Baoshan Iron Steel and Fujian Nanwang Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Nanwang Envir 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 Fujian Nanwang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Nanwang Envir has no effect on the direction of Baoshan Iron i.e., Baoshan Iron and Fujian Nanwang go up and down completely randomly.
Pair Corralation between Baoshan Iron and Fujian Nanwang
Assuming the 90 days trading horizon Baoshan Iron Steel is expected to generate 0.62 times more return on investment than Fujian Nanwang. However, Baoshan Iron Steel is 1.61 times less risky than Fujian Nanwang. It trades about 0.06 of its potential returns per unit of risk. Fujian Nanwang Environment is currently generating about -0.06 per unit of risk. If you would invest 660.00 in Baoshan Iron Steel on October 28, 2024 and sell it today you would earn a total of 22.00 from holding Baoshan Iron Steel or generate 3.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baoshan Iron Steel vs. Fujian Nanwang Environment
Performance |
| Timeline |
| Baoshan Iron Steel |
| Fujian Nanwang Envir |
Baoshan Iron and Fujian Nanwang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baoshan Iron and Fujian Nanwang
The main advantage of trading using opposite Baoshan Iron and Fujian Nanwang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baoshan Iron position performs unexpectedly, Fujian Nanwang 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 Fujian Nanwang will offset losses from the drop in Fujian Nanwang'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 |
| Fujian Nanwang vs. Zijin Mining Group | Fujian Nanwang vs. Wanhua Chemical Group | Fujian Nanwang vs. Baoshan Iron Steel | Fujian Nanwang vs. Shandong Gold Mining |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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