Correlation Between Shandong Iron and Baoshan Iron
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By analyzing existing cross correlation between Shandong Iron and and Baoshan Iron Steel, you can compare the effects of market volatilities on Shandong Iron and Baoshan Iron 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 Shandong Iron with a short position of Baoshan Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Iron and Baoshan Iron.
Diversification Opportunities for Shandong Iron and Baoshan Iron
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shandong and Baoshan is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Iron and and Baoshan Iron Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baoshan Iron Steel and Shandong 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 Shandong Iron and are associated (or correlated) with Baoshan Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baoshan Iron Steel has no effect on the direction of Shandong Iron i.e., Shandong Iron and Baoshan Iron go up and down completely randomly.
Pair Corralation between Shandong Iron and Baoshan Iron
Assuming the 90 days trading horizon Shandong Iron and is expected to under-perform the Baoshan Iron. In addition to that, Shandong Iron is 1.07 times more volatile than Baoshan Iron Steel. It trades about 0.0 of its total potential returns per unit of risk. Baoshan Iron Steel is currently generating about 0.02 per unit of volatility. If you would invest 615.00 in Baoshan Iron Steel on October 16, 2024 and sell it today you would earn a total of 43.00 from holding Baoshan Iron Steel or generate 6.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Iron and vs. Baoshan Iron Steel
Performance |
| Timeline |
| Shandong Iron |
| Baoshan Iron Steel |
Shandong Iron and Baoshan Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Iron and Baoshan Iron
The main advantage of trading using opposite Shandong Iron and Baoshan Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Iron position performs unexpectedly, Baoshan Iron 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 Baoshan Iron will offset losses from the drop in Baoshan Iron's long position.| Shandong Iron vs. Zijin Mining Group | Shandong Iron vs. Wanhua Chemical Group | Shandong Iron vs. Baoshan Iron Steel | Shandong Iron vs. Shandong Gold Mining |
| Baoshan Iron vs. Fujian Nanwang Environment | Baoshan Iron vs. Shandong Iron and | Baoshan Iron vs. Holitech Technology Co | Baoshan Iron vs. Qiaoyin Environmental Tech |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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