Correlation Between Xinjiang Baodi and Beijing Originwater
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By analyzing existing cross correlation between Xinjiang Baodi Mining and Beijing Originwater Technology, you can compare the effects of market volatilities on Xinjiang Baodi and Beijing Originwater 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 Beijing Originwater. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and Beijing Originwater.
Diversification Opportunities for Xinjiang Baodi and Beijing Originwater
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xinjiang and Beijing is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining and Beijing Originwater Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Originwater 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 Beijing Originwater. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Originwater has no effect on the direction of Xinjiang Baodi i.e., Xinjiang Baodi and Beijing Originwater go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and Beijing Originwater
Assuming the 90 days trading horizon Xinjiang Baodi is expected to generate 1.24 times less return on investment than Beijing Originwater. In addition to that, Xinjiang Baodi is 1.13 times more volatile than Beijing Originwater Technology. It trades about 0.02 of its total potential returns per unit of risk. Beijing Originwater Technology is currently generating about 0.03 per unit of volatility. If you would invest 466.00 in Beijing Originwater Technology on September 12, 2024 and sell it today you would earn a total of 124.00 from holding Beijing Originwater Technology or generate 26.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 89.5% |
| Values | Daily Returns |
Xinjiang Baodi Mining vs. Beijing Originwater Technology
Performance |
| Timeline |
| Xinjiang Baodi Mining |
| Beijing Originwater |
Xinjiang Baodi and Beijing Originwater Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Baodi and Beijing Originwater
The main advantage of trading using opposite Xinjiang Baodi and Beijing Originwater positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi position performs unexpectedly, Beijing Originwater 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 Beijing Originwater will offset losses from the drop in Beijing Originwater's long position.| Xinjiang Baodi vs. Zijin Mining Group | Xinjiang Baodi vs. Wanhua Chemical Group | Xinjiang Baodi vs. Baoshan Iron Steel | Xinjiang Baodi vs. Rongsheng Petrochemical 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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