Correlation Between Xinjiang Baodi and Gan Yuan
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By analyzing existing cross correlation between Xinjiang Baodi Mining and Gan Yuan Foods, you can compare the effects of market volatilities on Xinjiang Baodi and Gan Yuan 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 Gan Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and Gan Yuan.
Diversification Opportunities for Xinjiang Baodi and Gan Yuan
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xinjiang and Gan is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining and Gan Yuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gan Yuan 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 Gan Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gan Yuan Foods has no effect on the direction of Xinjiang Baodi i.e., Xinjiang Baodi and Gan Yuan go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and Gan Yuan
Assuming the 90 days trading horizon Xinjiang Baodi Mining is expected to generate 1.31 times more return on investment than Gan Yuan. However, Xinjiang Baodi is 1.31 times more volatile than Gan Yuan Foods. It trades about 0.09 of its potential returns per unit of risk. Gan Yuan Foods is currently generating about 0.1 per unit of risk. If you would invest 635.00 in Xinjiang Baodi Mining on August 28, 2024 and sell it today you would earn a total of 30.00 from holding Xinjiang Baodi Mining or generate 4.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Baodi Mining vs. Gan Yuan Foods
Performance |
| Timeline |
| Xinjiang Baodi Mining |
| Gan Yuan Foods |
Xinjiang Baodi and Gan Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Baodi and Gan Yuan
The main advantage of trading using opposite Xinjiang Baodi and Gan Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi position performs unexpectedly, Gan Yuan 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 Gan Yuan will offset losses from the drop in Gan Yuan's 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 |
| Gan Yuan vs. Marssenger Kitchenware Co | Gan Yuan vs. XinJiang GuoTong Pipeline | Gan Yuan vs. Yindu Kitchen Equipment | Gan Yuan vs. Zhejiang Kingland Pipeline |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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