Correlation Between Baoshan Iron and Suzhou Xingye
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By analyzing existing cross correlation between Baoshan Iron Steel and Suzhou Xingye Material, you can compare the effects of market volatilities on Baoshan Iron and Suzhou Xingye 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 Suzhou Xingye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baoshan Iron and Suzhou Xingye.
Diversification Opportunities for Baoshan Iron and Suzhou Xingye
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Baoshan and Suzhou is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Baoshan Iron Steel and Suzhou Xingye Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Xingye Material 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 Suzhou Xingye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Xingye Material has no effect on the direction of Baoshan Iron i.e., Baoshan Iron and Suzhou Xingye go up and down completely randomly.
Pair Corralation between Baoshan Iron and Suzhou Xingye
Assuming the 90 days trading horizon Baoshan Iron Steel is expected to under-perform the Suzhou Xingye. But the stock apears to be less risky and, when comparing its historical volatility, Baoshan Iron Steel is 1.82 times less risky than Suzhou Xingye. The stock trades about -0.01 of its potential returns per unit of risk. The Suzhou Xingye Material is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,111 in Suzhou Xingye Material on October 25, 2024 and sell it today you would earn a total of 89.00 from holding Suzhou Xingye Material or generate 8.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baoshan Iron Steel vs. Suzhou Xingye Material
Performance |
| Timeline |
| Baoshan Iron Steel |
| Suzhou Xingye Material |
Baoshan Iron and Suzhou Xingye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baoshan Iron and Suzhou Xingye
The main advantage of trading using opposite Baoshan Iron and Suzhou Xingye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baoshan Iron position performs unexpectedly, Suzhou Xingye 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 Suzhou Xingye will offset losses from the drop in Suzhou Xingye's long position.| Baoshan Iron vs. Zijin Mining Group | Baoshan Iron vs. Wanhua Chemical Group | Baoshan Iron vs. Rongsheng Petrochemical Co | Baoshan Iron vs. Inner Mongolia BaoTou |
| Suzhou Xingye vs. Zijin Mining Group | Suzhou Xingye vs. Wanhua Chemical Group | Suzhou Xingye vs. Baoshan Iron Steel | Suzhou Xingye vs. Rongsheng Petrochemical Co |
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 CEOs Directory module to screen CEOs from public companies around the world.
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