Correlation Between Baoshan Iron and Hainan Mining
Specify exactly 2 symbols:
By analyzing existing cross correlation between Baoshan Iron Steel and Hainan Mining Co, you can compare the effects of market volatilities on Baoshan Iron and Hainan Mining 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 Hainan Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baoshan Iron and Hainan Mining.
Diversification Opportunities for Baoshan Iron and Hainan Mining
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Baoshan and Hainan is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Baoshan Iron Steel and Hainan Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Mining 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 Hainan Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Mining has no effect on the direction of Baoshan Iron i.e., Baoshan Iron and Hainan Mining go up and down completely randomly.
Pair Corralation between Baoshan Iron and Hainan Mining
Assuming the 90 days trading horizon Baoshan Iron Steel is expected to generate 0.8 times more return on investment than Hainan Mining. However, Baoshan Iron Steel is 1.25 times less risky than Hainan Mining. It trades about -0.13 of its potential returns per unit of risk. Hainan Mining Co is currently generating about -0.31 per unit of risk. If you would invest 689.00 in Baoshan Iron Steel on October 20, 2024 and sell it today you would lose (29.00) from holding Baoshan Iron Steel or give up 4.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baoshan Iron Steel vs. Hainan Mining Co
Performance |
| Timeline |
| Baoshan Iron Steel |
| Hainan Mining |
Baoshan Iron and Hainan Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baoshan Iron and Hainan Mining
The main advantage of trading using opposite Baoshan Iron and Hainan Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baoshan Iron position performs unexpectedly, Hainan Mining 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 Hainan Mining will offset losses from the drop in Hainan Mining's long position.| Baoshan Iron vs. Inspur Software Co | Baoshan Iron vs. Tianshui Huatian Technology | Baoshan Iron vs. Digiwin Software Co | Baoshan Iron vs. Tianjin Ruixin Technology |
| Hainan Mining vs. Qiaoyin Environmental Tech | Hainan Mining vs. Baoshan Iron Steel | Hainan Mining vs. City Development Environment | Hainan Mining vs. Changjiang Jinggong Steel |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |