Correlation Between Xinjiang Baodi and Qingdao Foods
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By analyzing existing cross correlation between Xinjiang Baodi Mining and Qingdao Foods Co, you can compare the effects of market volatilities on Xinjiang Baodi and Qingdao Foods 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 Qingdao Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and Qingdao Foods.
Diversification Opportunities for Xinjiang Baodi and Qingdao Foods
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xinjiang and Qingdao is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining and Qingdao Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Foods 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 Qingdao Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Foods has no effect on the direction of Xinjiang Baodi i.e., Xinjiang Baodi and Qingdao Foods go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and Qingdao Foods
Assuming the 90 days trading horizon Xinjiang Baodi Mining is expected to generate 1.25 times more return on investment than Qingdao Foods. However, Xinjiang Baodi is 1.25 times more volatile than Qingdao Foods Co. It trades about 0.02 of its potential returns per unit of risk. Qingdao Foods Co is currently generating about 0.01 per unit of risk. If you would invest 604.00 in Xinjiang Baodi Mining on September 5, 2024 and sell it today you would earn a total of 70.00 from holding Xinjiang Baodi Mining or generate 11.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 88.47% |
| Values | Daily Returns |
Xinjiang Baodi Mining vs. Qingdao Foods Co
Performance |
| Timeline |
| Xinjiang Baodi Mining |
| Qingdao Foods |
Xinjiang Baodi and Qingdao Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Baodi and Qingdao Foods
The main advantage of trading using opposite Xinjiang Baodi and Qingdao Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi position performs unexpectedly, Qingdao Foods 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 Qingdao Foods will offset losses from the drop in Qingdao Foods' 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 |
| Qingdao Foods vs. Gem Year Industrial Co | Qingdao Foods vs. Xinjiang Baodi Mining | Qingdao Foods vs. Huaxia Fund Management | Qingdao Foods vs. Qinghaihuading Industrial 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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