Correlation Between Xinjiang Baodi and Chongqing Shunbo
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xinjiang Baodi Mining and Chongqing Shunbo Aluminum, you can compare the effects of market volatilities on Xinjiang Baodi and Chongqing Shunbo 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 Chongqing Shunbo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and Chongqing Shunbo.
Diversification Opportunities for Xinjiang Baodi and Chongqing Shunbo
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xinjiang and Chongqing is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining and Chongqing Shunbo Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Shunbo Aluminum 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 Chongqing Shunbo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Shunbo Aluminum has no effect on the direction of Xinjiang Baodi i.e., Xinjiang Baodi and Chongqing Shunbo go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and Chongqing Shunbo
Assuming the 90 days trading horizon Xinjiang Baodi Mining is expected to generate 1.26 times more return on investment than Chongqing Shunbo. However, Xinjiang Baodi is 1.26 times more volatile than Chongqing Shunbo Aluminum. It trades about -0.03 of its potential returns per unit of risk. Chongqing Shunbo Aluminum is currently generating about -0.15 per unit of risk. If you would invest 687.00 in Xinjiang Baodi Mining on October 12, 2024 and sell it today you would lose (16.00) from holding Xinjiang Baodi Mining or give up 2.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Baodi Mining vs. Chongqing Shunbo Aluminum
Performance |
| Timeline |
| Xinjiang Baodi Mining |
| Chongqing Shunbo Aluminum |
Xinjiang Baodi and Chongqing Shunbo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Baodi and Chongqing Shunbo
The main advantage of trading using opposite Xinjiang Baodi and Chongqing Shunbo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi position performs unexpectedly, Chongqing Shunbo 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 Chongqing Shunbo will offset losses from the drop in Chongqing Shunbo's long position.| Xinjiang Baodi vs. Huasi Agricultural Development | Xinjiang Baodi vs. Fujian Anjoy Foods | Xinjiang Baodi vs. Shantou Wanshun Package | Xinjiang Baodi vs. Long Yuan Construction |
| Chongqing Shunbo vs. Nanning Chemical Industry | Chongqing Shunbo vs. Ningxia Younglight Chemicals | Chongqing Shunbo vs. Harbin Hatou Investment | Chongqing Shunbo vs. Postal Savings Bank |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Stocks Directory Find actively traded stocks across global markets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |