Correlation Between Xinjiang Baodi and Yunnan Xiyi
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By analyzing existing cross correlation between Xinjiang Baodi Mining and Yunnan Xiyi Industrial, you can compare the effects of market volatilities on Xinjiang Baodi and Yunnan Xiyi 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 Yunnan Xiyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and Yunnan Xiyi.
Diversification Opportunities for Xinjiang Baodi and Yunnan Xiyi
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Xinjiang and Yunnan is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining and Yunnan Xiyi Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunnan Xiyi 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 Yunnan Xiyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunnan Xiyi Industrial has no effect on the direction of Xinjiang Baodi i.e., Xinjiang Baodi and Yunnan Xiyi go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and Yunnan Xiyi
Assuming the 90 days trading horizon Xinjiang Baodi Mining is expected to under-perform the Yunnan Xiyi. But the stock apears to be less risky and, when comparing its historical volatility, Xinjiang Baodi Mining is 2.64 times less risky than Yunnan Xiyi. The stock trades about -0.17 of its potential returns per unit of risk. The Yunnan Xiyi Industrial is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,327 in Yunnan Xiyi Industrial on December 1, 2024 and sell it today you would earn a total of 53.00 from holding Yunnan Xiyi Industrial or generate 2.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Baodi Mining vs. Yunnan Xiyi Industrial
Performance |
| Timeline |
| Xinjiang Baodi Mining |
| Yunnan Xiyi Industrial |
Xinjiang Baodi and Yunnan Xiyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Baodi and Yunnan Xiyi
The main advantage of trading using opposite Xinjiang Baodi and Yunnan Xiyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi position performs unexpectedly, Yunnan Xiyi 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 Yunnan Xiyi will offset losses from the drop in Yunnan Xiyi's long position.| Xinjiang Baodi vs. Innovative Medical Management | Xinjiang Baodi vs. Chison Medical Technologies | Xinjiang Baodi vs. Shandong Publishing Media | Xinjiang Baodi vs. CareRay Digital Medical |
| Yunnan Xiyi vs. Anji Foodstuff Co | Yunnan Xiyi vs. Guilin Seamild Foods | Yunnan Xiyi vs. Western Metal Materials | Yunnan Xiyi vs. Beijing Easpring Material |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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