Correlation Between Xinjiang Baodi and Jahen Household
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By analyzing existing cross correlation between Xinjiang Baodi Mining and Jahen Household Products, you can compare the effects of market volatilities on Xinjiang Baodi and Jahen Household 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 Jahen Household. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and Jahen Household.
Diversification Opportunities for Xinjiang Baodi and Jahen Household
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xinjiang and Jahen is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining and Jahen Household Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jahen Household Products 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 Jahen Household. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jahen Household Products has no effect on the direction of Xinjiang Baodi i.e., Xinjiang Baodi and Jahen Household go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and Jahen Household
Assuming the 90 days trading horizon Xinjiang Baodi is expected to generate 4.83 times less return on investment than Jahen Household. But when comparing it to its historical volatility, Xinjiang Baodi Mining is 2.0 times less risky than Jahen Household. It trades about 0.07 of its potential returns per unit of risk. Jahen Household Products is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,644 in Jahen Household Products on September 12, 2024 and sell it today you would earn a total of 300.00 from holding Jahen Household Products or generate 18.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Baodi Mining vs. Jahen Household Products
Performance |
| Timeline |
| Xinjiang Baodi Mining |
| Jahen Household Products |
Xinjiang Baodi and Jahen Household Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Baodi and Jahen Household
The main advantage of trading using opposite Xinjiang Baodi and Jahen Household positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi position performs unexpectedly, Jahen Household 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 Jahen Household will offset losses from the drop in Jahen Household'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 |
| Jahen Household vs. ChengDu Hi Tech Development | Jahen Household vs. Guangdong Shenglu Telecommunication | Jahen Household vs. Tongyu Communication | Jahen Household vs. FSPG Hi Tech 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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