Correlation Between Xinjiang Baodi and Tianjin Ruixin
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By analyzing existing cross correlation between Xinjiang Baodi Mining and Tianjin Ruixin Technology, you can compare the effects of market volatilities on Xinjiang Baodi and Tianjin Ruixin 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 Tianjin Ruixin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and Tianjin Ruixin.
Diversification Opportunities for Xinjiang Baodi and Tianjin Ruixin
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xinjiang and Tianjin is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining and Tianjin Ruixin Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Ruixin Technology 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 Tianjin Ruixin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Ruixin Technology has no effect on the direction of Xinjiang Baodi i.e., Xinjiang Baodi and Tianjin Ruixin go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and Tianjin Ruixin
Assuming the 90 days trading horizon Xinjiang Baodi Mining is expected to generate 0.83 times more return on investment than Tianjin Ruixin. However, Xinjiang Baodi Mining is 1.21 times less risky than Tianjin Ruixin. It trades about -0.14 of its potential returns per unit of risk. Tianjin Ruixin Technology is currently generating about -0.18 per unit of risk. If you would invest 695.00 in Xinjiang Baodi Mining on October 21, 2024 and sell it today you would lose (70.00) from holding Xinjiang Baodi Mining or give up 10.07% 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. Tianjin Ruixin Technology
Performance |
| Timeline |
| Xinjiang Baodi Mining |
| Tianjin Ruixin Technology |
Xinjiang Baodi and Tianjin Ruixin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Baodi and Tianjin Ruixin
The main advantage of trading using opposite Xinjiang Baodi and Tianjin Ruixin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi position performs unexpectedly, Tianjin Ruixin 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 Tianjin Ruixin will offset losses from the drop in Tianjin Ruixin's long position.| Xinjiang Baodi vs. Eyebright Medical Technology | Xinjiang Baodi vs. Anhui Transport Consulting | Xinjiang Baodi vs. Cowealth Medical China | Xinjiang Baodi vs. Hainan Haiqi Transportation |
| Tianjin Ruixin vs. Zhangjiagang Freetrade Science | Tianjin Ruixin vs. China World Trade | Tianjin Ruixin vs. Soyea Technology Co | Tianjin Ruixin vs. Aurora Optoelectronics 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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