Correlation Between Wanhua Chemical and Xinjiang Baodi
Specify exactly 2 symbols:
By analyzing existing cross correlation between Wanhua Chemical Group and Xinjiang Baodi Mining, you can compare the effects of market volatilities on Wanhua Chemical and Xinjiang Baodi 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 Wanhua Chemical with a short position of Xinjiang Baodi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wanhua Chemical and Xinjiang Baodi.
Diversification Opportunities for Wanhua Chemical and Xinjiang Baodi
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Wanhua and Xinjiang is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Wanhua Chemical Group and Xinjiang Baodi Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Baodi Mining and Wanhua Chemical 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 Wanhua Chemical Group are associated (or correlated) with Xinjiang Baodi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Baodi Mining has no effect on the direction of Wanhua Chemical i.e., Wanhua Chemical and Xinjiang Baodi go up and down completely randomly.
Pair Corralation between Wanhua Chemical and Xinjiang Baodi
Assuming the 90 days trading horizon Wanhua Chemical Group is expected to under-perform the Xinjiang Baodi. But the stock apears to be less risky and, when comparing its historical volatility, Wanhua Chemical Group is 2.4 times less risky than Xinjiang Baodi. The stock trades about -0.37 of its potential returns per unit of risk. The Xinjiang Baodi Mining is currently generating about -0.13 of returns per unit of risk over similar time horizon. If you would invest 671.00 in Xinjiang Baodi Mining on October 25, 2024 and sell it today you would lose (59.00) from holding Xinjiang Baodi Mining or give up 8.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wanhua Chemical Group vs. Xinjiang Baodi Mining
Performance |
| Timeline |
| Wanhua Chemical Group |
| Xinjiang Baodi Mining |
Wanhua Chemical and Xinjiang Baodi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wanhua Chemical and Xinjiang Baodi
The main advantage of trading using opposite Wanhua Chemical and Xinjiang Baodi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wanhua Chemical position performs unexpectedly, Xinjiang Baodi 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 Xinjiang Baodi will offset losses from the drop in Xinjiang Baodi's long position.| Wanhua Chemical vs. Zijin Mining Group | Wanhua Chemical vs. Baoshan Iron Steel | Wanhua Chemical vs. Rongsheng Petrochemical Co | Wanhua Chemical vs. Inner Mongolia BaoTou |
| Xinjiang Baodi vs. Zijin Mining Group | Xinjiang Baodi vs. Wanhua Chemical Group | Xinjiang Baodi vs. Baoshan Iron Steel | Xinjiang Baodi 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.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Stocks Directory Find actively traded stocks across global markets |