Correlation Between Xinjiang Baodi and Suzhou Industrial
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By analyzing existing cross correlation between Xinjiang Baodi Mining and Suzhou Industrial Park, you can compare the effects of market volatilities on Xinjiang Baodi and Suzhou Industrial 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 Suzhou Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and Suzhou Industrial.
Diversification Opportunities for Xinjiang Baodi and Suzhou Industrial
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xinjiang and Suzhou is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining and Suzhou Industrial Park in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Industrial Park 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 Suzhou Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Industrial Park has no effect on the direction of Xinjiang Baodi i.e., Xinjiang Baodi and Suzhou Industrial go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and Suzhou Industrial
Assuming the 90 days trading horizon Xinjiang Baodi Mining is expected to under-perform the Suzhou Industrial. But the stock apears to be less risky and, when comparing its historical volatility, Xinjiang Baodi Mining is 2.44 times less risky than Suzhou Industrial. The stock trades about -0.13 of its potential returns per unit of risk. The Suzhou Industrial Park is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 1,023 in Suzhou Industrial Park on October 25, 2024 and sell it today you would lose (125.00) from holding Suzhou Industrial Park or give up 12.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Xinjiang Baodi Mining vs. Suzhou Industrial Park
Performance |
| Timeline |
| Xinjiang Baodi Mining |
| Suzhou Industrial Park |
Xinjiang Baodi and Suzhou Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Baodi and Suzhou Industrial
The main advantage of trading using opposite Xinjiang Baodi and Suzhou Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi position performs unexpectedly, Suzhou Industrial 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 Suzhou Industrial will offset losses from the drop in Suzhou Industrial'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 |
| Suzhou Industrial vs. Kweichow Moutai Co | Suzhou Industrial vs. Contemporary Amperex Technology | Suzhou Industrial vs. Beijing Roborock Technology | Suzhou Industrial vs. BYD Co Ltd |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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