Correlation Between Baoshan Iron and Sobute New
Specify exactly 2 symbols:
By analyzing existing cross correlation between Baoshan Iron Steel and Sobute New Materials, you can compare the effects of market volatilities on Baoshan Iron and Sobute New 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 Sobute New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baoshan Iron and Sobute New.
Diversification Opportunities for Baoshan Iron and Sobute New
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Baoshan and Sobute is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Baoshan Iron Steel and Sobute New Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sobute New 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 Sobute New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sobute New Materials has no effect on the direction of Baoshan Iron i.e., Baoshan Iron and Sobute New go up and down completely randomly.
Pair Corralation between Baoshan Iron and Sobute New
Assuming the 90 days trading horizon Baoshan Iron is expected to generate 1.17 times less return on investment than Sobute New. In addition to that, Baoshan Iron is 1.0 times more volatile than Sobute New Materials. It trades about 0.16 of its total potential returns per unit of risk. Sobute New Materials is currently generating about 0.19 per unit of volatility. If you would invest 654.00 in Sobute New Materials on September 12, 2024 and sell it today you would earn a total of 192.00 from holding Sobute New Materials or generate 29.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.28% |
| Values | Daily Returns |
Baoshan Iron Steel vs. Sobute New Materials
Performance |
| Timeline |
| Baoshan Iron Steel |
| Sobute New Materials |
Baoshan Iron and Sobute New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baoshan Iron and Sobute New
The main advantage of trading using opposite Baoshan Iron and Sobute New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baoshan Iron position performs unexpectedly, Sobute New 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 Sobute New will offset losses from the drop in Sobute New'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 |
| Sobute New vs. Zijin Mining Group | Sobute New vs. Wanhua Chemical Group | Sobute New vs. Baoshan Iron Steel | Sobute New 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Stocks Directory Find actively traded stocks across global markets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |