Correlation Between Xinjiang Baodi and Tongling Nonferrous
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By analyzing existing cross correlation between Xinjiang Baodi Mining and Tongling Nonferrous Metals, you can compare the effects of market volatilities on Xinjiang Baodi and Tongling Nonferrous 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 Tongling Nonferrous. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and Tongling Nonferrous.
Diversification Opportunities for Xinjiang Baodi and Tongling Nonferrous
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xinjiang and Tongling is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining and Tongling Nonferrous Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongling Nonferrous 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 Tongling Nonferrous. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tongling Nonferrous has no effect on the direction of Xinjiang Baodi i.e., Xinjiang Baodi and Tongling Nonferrous go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and Tongling Nonferrous
Assuming the 90 days trading horizon Xinjiang Baodi Mining is expected to generate 1.57 times more return on investment than Tongling Nonferrous. However, Xinjiang Baodi is 1.57 times more volatile than Tongling Nonferrous Metals. It trades about 0.12 of its potential returns per unit of risk. Tongling Nonferrous Metals is currently generating about 0.09 per unit of risk. If you would invest 647.00 in Xinjiang Baodi Mining on September 13, 2024 and sell it today you would earn a total of 40.00 from holding Xinjiang Baodi Mining or generate 6.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Baodi Mining vs. Tongling Nonferrous Metals
Performance |
| Timeline |
| Xinjiang Baodi Mining |
| Tongling Nonferrous |
Xinjiang Baodi and Tongling Nonferrous Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Baodi and Tongling Nonferrous
The main advantage of trading using opposite Xinjiang Baodi and Tongling Nonferrous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi position performs unexpectedly, Tongling Nonferrous 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 Tongling Nonferrous will offset losses from the drop in Tongling Nonferrous' long position.| Xinjiang Baodi vs. Zijin Mining Group | Xinjiang Baodi vs. Wanhua Chemical Group | Xinjiang Baodi vs. Baoshan Iron Steel | Xinjiang Baodi vs. Shandong Gold Mining |
| Tongling Nonferrous vs. Zhejiang Kingland Pipeline | Tongling Nonferrous vs. Ningbo Construction Co | Tongling Nonferrous vs. GKHT Medical Technology | Tongling Nonferrous vs. Double Medical Technology |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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