Correlation Between Xinjiang Baodi and CIMC Vehicles
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By analyzing existing cross correlation between Xinjiang Baodi Mining and CIMC Vehicles Co, you can compare the effects of market volatilities on Xinjiang Baodi and CIMC Vehicles 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 CIMC Vehicles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and CIMC Vehicles.
Diversification Opportunities for Xinjiang Baodi and CIMC Vehicles
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xinjiang and CIMC is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining and CIMC Vehicles Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIMC Vehicles 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 CIMC Vehicles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIMC Vehicles has no effect on the direction of Xinjiang Baodi i.e., Xinjiang Baodi and CIMC Vehicles go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and CIMC Vehicles
Assuming the 90 days trading horizon Xinjiang Baodi Mining is expected to generate 1.25 times more return on investment than CIMC Vehicles. However, Xinjiang Baodi is 1.25 times more volatile than CIMC Vehicles Co. It trades about 0.12 of its potential returns per unit of risk. CIMC Vehicles Co is currently generating about -0.07 per unit of risk. If you would invest 616.00 in Xinjiang Baodi Mining on August 30, 2024 and sell it today you would earn a total of 42.00 from holding Xinjiang Baodi Mining or generate 6.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Baodi Mining vs. CIMC Vehicles Co
Performance |
| Timeline |
| Xinjiang Baodi Mining |
| CIMC Vehicles |
Xinjiang Baodi and CIMC Vehicles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Baodi and CIMC Vehicles
The main advantage of trading using opposite Xinjiang Baodi and CIMC Vehicles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi position performs unexpectedly, CIMC Vehicles 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 CIMC Vehicles will offset losses from the drop in CIMC Vehicles' long position.| Xinjiang Baodi vs. Zijin Mining Group | Xinjiang Baodi vs. Wanhua Chemical Group | Xinjiang Baodi vs. Baoshan Iron Steel | Xinjiang Baodi vs. Shandong Gold Mining |
| CIMC Vehicles vs. Agricultural Bank of | CIMC Vehicles vs. Industrial and Commercial | CIMC Vehicles vs. Bank of China | CIMC Vehicles vs. China Construction Bank |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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