Correlation Between Xinjiang Baodi and Shandong Sanyuan
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xinjiang Baodi Mining and Shandong Sanyuan Biotechnology, you can compare the effects of market volatilities on Xinjiang Baodi and Shandong Sanyuan 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 Shandong Sanyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and Shandong Sanyuan.
Diversification Opportunities for Xinjiang Baodi and Shandong Sanyuan
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Xinjiang and Shandong is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining and Shandong Sanyuan Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Sanyuan Bio 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 Shandong Sanyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Sanyuan Bio has no effect on the direction of Xinjiang Baodi i.e., Xinjiang Baodi and Shandong Sanyuan go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and Shandong Sanyuan
Assuming the 90 days trading horizon Xinjiang Baodi Mining is expected to generate 1.35 times more return on investment than Shandong Sanyuan. However, Xinjiang Baodi is 1.35 times more volatile than Shandong Sanyuan Biotechnology. It trades about 0.02 of its potential returns per unit of risk. Shandong Sanyuan Biotechnology is currently generating about -0.02 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 16.00 from holding Xinjiang Baodi Mining or generate 2.65% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 95.24% |
Values | Daily Returns |
Xinjiang Baodi Mining vs. Shandong Sanyuan Biotechnology
Performance |
Timeline |
Xinjiang Baodi Mining |
Shandong Sanyuan Bio |
Xinjiang Baodi and Shandong Sanyuan Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xinjiang Baodi and Shandong Sanyuan
The main advantage of trading using opposite Xinjiang Baodi and Shandong Sanyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi position performs unexpectedly, Shandong Sanyuan 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 Shandong Sanyuan will offset losses from the drop in Shandong Sanyuan'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 |
Shandong Sanyuan vs. Tongyu Communication | ||
Shandong Sanyuan vs. Zotye Automobile Co | ||
Shandong Sanyuan vs. Ningbo Fangzheng Automobile | ||
Shandong Sanyuan vs. Xiwang Foodstuffs 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |