Correlation Between Xinjiang Baodi and Finework New
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By analyzing existing cross correlation between Xinjiang Baodi Mining and Finework New Energy, you can compare the effects of market volatilities on Xinjiang Baodi and Finework New 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 Finework New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and Finework New.
Diversification Opportunities for Xinjiang Baodi and Finework New
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xinjiang and Finework is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining and Finework New Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Finework New Energy 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 Finework New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Finework New Energy has no effect on the direction of Xinjiang Baodi i.e., Xinjiang Baodi and Finework New go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and Finework New
Assuming the 90 days trading horizon Xinjiang Baodi is expected to generate 1.79 times less return on investment than Finework New. But when comparing it to its historical volatility, Xinjiang Baodi Mining is 1.97 times less risky than Finework New. It trades about 0.02 of its potential returns per unit of risk. Finework New Energy is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 3,371 in Finework New Energy on September 14, 2024 and sell it today you would lose (383.00) from holding Finework New Energy or give up 11.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Baodi Mining vs. Finework New Energy
Performance |
| Timeline |
| Xinjiang Baodi Mining |
| Finework New Energy |
Xinjiang Baodi and Finework New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Baodi and Finework New
The main advantage of trading using opposite Xinjiang Baodi and Finework New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi position performs unexpectedly, Finework New 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 Finework New will offset losses from the drop in Finework New's 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 |
| Finework New vs. Xinjiang Baodi Mining | Finework New vs. Longmaster Information Tech | Finework New vs. Zhejiang Yayi Metal | Finework New vs. Hefei Metalforming Mach |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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