Correlation Between Xinjiang Baodi and XiaMen HongXin
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By analyzing existing cross correlation between Xinjiang Baodi Mining and XiaMen HongXin Electron tech, you can compare the effects of market volatilities on Xinjiang Baodi and XiaMen HongXin 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 XiaMen HongXin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and XiaMen HongXin.
Diversification Opportunities for Xinjiang Baodi and XiaMen HongXin
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xinjiang and XiaMen is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining and XiaMen HongXin Electron tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XiaMen HongXin Electron 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 XiaMen HongXin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XiaMen HongXin Electron has no effect on the direction of Xinjiang Baodi i.e., Xinjiang Baodi and XiaMen HongXin go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and XiaMen HongXin
Assuming the 90 days trading horizon Xinjiang Baodi Mining is expected to under-perform the XiaMen HongXin. But the stock apears to be less risky and, when comparing its historical volatility, Xinjiang Baodi Mining is 1.82 times less risky than XiaMen HongXin. The stock trades about -0.19 of its potential returns per unit of risk. The XiaMen HongXin Electron tech is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 2,417 in XiaMen HongXin Electron tech on October 30, 2024 and sell it today you would lose (270.00) from holding XiaMen HongXin Electron tech or give up 11.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Baodi Mining vs. XiaMen HongXin Electron tech
Performance |
| Timeline |
| Xinjiang Baodi Mining |
| XiaMen HongXin Electron |
Xinjiang Baodi and XiaMen HongXin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Baodi and XiaMen HongXin
The main advantage of trading using opposite Xinjiang Baodi and XiaMen HongXin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi position performs unexpectedly, XiaMen HongXin 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 XiaMen HongXin will offset losses from the drop in XiaMen HongXin's long position.| Xinjiang Baodi vs. Haima Automobile Group | Xinjiang Baodi vs. Nuode Investment Co | Xinjiang Baodi vs. Zoje Resources Investment | Xinjiang Baodi vs. Jiangsu Xinri E Vehicle |
| XiaMen HongXin vs. Sportsoul Co Ltd | XiaMen HongXin vs. StarPower Semiconductor | XiaMen HongXin vs. Southchip Semiconductor Technology | XiaMen HongXin vs. Shannon Semiconductor Technology |
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.
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