Correlation Between Xinjiang Baodi and Hengli Industrial
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xinjiang Baodi Mining and Hengli Industrial Development, you can compare the effects of market volatilities on Xinjiang Baodi and Hengli Industrial 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 Xinjiang Baodi with a short position of Hengli Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and Hengli Industrial.
Diversification Opportunities for Xinjiang Baodi and Hengli Industrial
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xinjiang and Hengli is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining and Hengli Industrial Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengli Industrial and Xinjiang Baodi 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 Xinjiang Baodi Mining are associated (or correlated) with Hengli Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengli Industrial has no effect on the direction of Xinjiang Baodi i.e., Xinjiang Baodi and Hengli Industrial go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and Hengli Industrial
Assuming the 90 days trading horizon Xinjiang Baodi Mining is expected to generate about the same return on investment as Hengli Industrial Development. But, Xinjiang Baodi Mining is 1.79 times less risky than Hengli Industrial. It trades about 0.02 of its potential returns per unit of risk. Hengli Industrial Development is currently generating about 0.01 per unit of risk. If you would invest 244.00 in Hengli Industrial Development on September 3, 2024 and sell it today you would lose (14.00) from holding Hengli Industrial Development or give up 5.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Baodi Mining vs. Hengli Industrial Development
Performance |
| Timeline |
| Xinjiang Baodi Mining |
| Hengli Industrial |
Xinjiang Baodi and Hengli Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Baodi and Hengli Industrial
The main advantage of trading using opposite Xinjiang Baodi and Hengli Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi position performs unexpectedly, Hengli Industrial 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 Hengli Industrial will offset losses from the drop in Hengli Industrial's long position.| Xinjiang Baodi vs. Zijin Mining Group | Xinjiang Baodi vs. Baoshan Iron Steel | Xinjiang Baodi vs. Rongsheng Petrochemical Co | Xinjiang Baodi vs. Hoshine Silicon Ind |
| Hengli Industrial vs. China Sports Industry | Hengli Industrial vs. Sunny Loan Top | Hengli Industrial vs. Jilin Jlu Communication | Hengli Industrial vs. Guangdong Shenglu Telecommunication |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |