Correlation Between Xinjiang Baodi and Jinsanjiang Silicon
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By analyzing existing cross correlation between Xinjiang Baodi Mining and Jinsanjiang Silicon Material, you can compare the effects of market volatilities on Xinjiang Baodi and Jinsanjiang Silicon 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 Jinsanjiang Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and Jinsanjiang Silicon.
Diversification Opportunities for Xinjiang Baodi and Jinsanjiang Silicon
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Xinjiang and Jinsanjiang is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining and Jinsanjiang Silicon Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinsanjiang Silicon 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 Jinsanjiang Silicon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinsanjiang Silicon has no effect on the direction of Xinjiang Baodi i.e., Xinjiang Baodi and Jinsanjiang Silicon go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and Jinsanjiang Silicon
Assuming the 90 days trading horizon Xinjiang Baodi is expected to generate 2.43 times less return on investment than Jinsanjiang Silicon. But when comparing it to its historical volatility, Xinjiang Baodi Mining is 1.75 times less risky than Jinsanjiang Silicon. It trades about 0.06 of its potential returns per unit of risk. Jinsanjiang Silicon Material is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 866.00 in Jinsanjiang Silicon Material on October 24, 2024 and sell it today you would earn a total of 242.00 from holding Jinsanjiang Silicon Material or generate 27.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Baodi Mining vs. Jinsanjiang Silicon Material
Performance |
| Timeline |
| Xinjiang Baodi Mining |
| Jinsanjiang Silicon |
Xinjiang Baodi and Jinsanjiang Silicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Baodi and Jinsanjiang Silicon
The main advantage of trading using opposite Xinjiang Baodi and Jinsanjiang Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi position performs unexpectedly, Jinsanjiang Silicon 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 Jinsanjiang Silicon will offset losses from the drop in Jinsanjiang Silicon's long position.| Xinjiang Baodi vs. Quectel Wireless Solutions | Xinjiang Baodi vs. Iat Automobile Technology | Xinjiang Baodi vs. Queclink Wireless Solutions | Xinjiang Baodi vs. Nanjing Putian Telecommunications |
| Jinsanjiang Silicon vs. Fujian Wanchen Biotechnology | Jinsanjiang Silicon vs. Hainan Mining Co | Jinsanjiang Silicon vs. Xinjiang Baodi Mining | Jinsanjiang Silicon vs. Ningbo MedicalSystem Biotechnology |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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