Correlation Between Xinjiang Baodi and Qingdao Choho
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By analyzing existing cross correlation between Xinjiang Baodi Mining and Qingdao Choho Industrial, you can compare the effects of market volatilities on Xinjiang Baodi and Qingdao Choho 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 Choho. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and Qingdao Choho.
Diversification Opportunities for Xinjiang Baodi and Qingdao Choho
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xinjiang and Qingdao is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining and Qingdao Choho Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Choho 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 Qingdao Choho. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Choho Industrial has no effect on the direction of Xinjiang Baodi i.e., Xinjiang Baodi and Qingdao Choho go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and Qingdao Choho
Assuming the 90 days trading horizon Xinjiang Baodi Mining is expected to generate 1.03 times more return on investment than Qingdao Choho. However, Xinjiang Baodi is 1.03 times more volatile than Qingdao Choho Industrial. It trades about 0.02 of its potential returns per unit of risk. Qingdao Choho Industrial is currently generating about 0.01 per unit of risk. If you would invest 664.00 in Xinjiang Baodi Mining on September 3, 2024 and sell it today you would earn a total of 7.00 from holding Xinjiang Baodi Mining or generate 1.05% 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. Qingdao Choho Industrial
Performance |
| Timeline |
| Xinjiang Baodi Mining |
| Qingdao Choho Industrial |
Xinjiang Baodi and Qingdao Choho Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Baodi and Qingdao Choho
The main advantage of trading using opposite Xinjiang Baodi and Qingdao Choho positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi position performs unexpectedly, Qingdao Choho 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 Choho will offset losses from the drop in Qingdao Choho's long position.| Xinjiang Baodi vs. Zijin Mining Group | Xinjiang Baodi vs. Baoshan Iron Steel | Xinjiang Baodi vs. Rongsheng Petrochemical Co | Xinjiang Baodi vs. Hoshine Silicon Ind |
| Qingdao Choho vs. Zhejiang Construction Investment | Qingdao Choho vs. Puyang Huicheng Electronic | Qingdao Choho vs. Epoxy Base Electronic | Qingdao Choho vs. Dongnan Electronics 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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