Correlation Between Xinjiang Baodi and Marssenger Kitchenware
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By analyzing existing cross correlation between Xinjiang Baodi Mining and Marssenger Kitchenware Co, you can compare the effects of market volatilities on Xinjiang Baodi and Marssenger Kitchenware 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 Marssenger Kitchenware. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and Marssenger Kitchenware.
Diversification Opportunities for Xinjiang Baodi and Marssenger Kitchenware
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Xinjiang and Marssenger is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining and Marssenger Kitchenware Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marssenger Kitchenware 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 Marssenger Kitchenware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marssenger Kitchenware has no effect on the direction of Xinjiang Baodi i.e., Xinjiang Baodi and Marssenger Kitchenware go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and Marssenger Kitchenware
Assuming the 90 days trading horizon Xinjiang Baodi Mining is expected to generate 0.8 times more return on investment than Marssenger Kitchenware. However, Xinjiang Baodi Mining is 1.25 times less risky than Marssenger Kitchenware. It trades about 0.02 of its potential returns per unit of risk. Marssenger Kitchenware Co is currently generating about -0.03 per unit of risk. If you would invest 604.00 in Xinjiang Baodi Mining on October 29, 2024 and sell it today you would earn a total of 17.00 from holding Xinjiang Baodi Mining or generate 2.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.23% |
| Values | Daily Returns |
Xinjiang Baodi Mining vs. Marssenger Kitchenware Co
Performance |
| Timeline |
| Xinjiang Baodi Mining |
| Marssenger Kitchenware |
Xinjiang Baodi and Marssenger Kitchenware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Baodi and Marssenger Kitchenware
The main advantage of trading using opposite Xinjiang Baodi and Marssenger Kitchenware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi position performs unexpectedly, Marssenger Kitchenware 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 Marssenger Kitchenware will offset losses from the drop in Marssenger Kitchenware's long position.| Xinjiang Baodi vs. Hunan Investment Group | Xinjiang Baodi vs. Shaanxi Energy Investment | Xinjiang Baodi vs. State Grid InformationCommunication | Xinjiang Baodi vs. Harbin Hatou Investment |
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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