Correlation Between Xinjiang Baodi and Ziel Home
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By analyzing existing cross correlation between Xinjiang Baodi Mining and Ziel Home Furnishing, you can compare the effects of market volatilities on Xinjiang Baodi and Ziel Home 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 Ziel Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and Ziel Home.
Diversification Opportunities for Xinjiang Baodi and Ziel Home
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xinjiang and Ziel is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining and Ziel Home Furnishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ziel Home Furnishing 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 Ziel Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ziel Home Furnishing has no effect on the direction of Xinjiang Baodi i.e., Xinjiang Baodi and Ziel Home go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and Ziel Home
Assuming the 90 days trading horizon Xinjiang Baodi Mining is expected to under-perform the Ziel Home. In addition to that, Xinjiang Baodi is 1.38 times more volatile than Ziel Home Furnishing. It trades about -0.18 of its total potential returns per unit of risk. Ziel Home Furnishing is currently generating about -0.22 per unit of volatility. If you would invest 2,126 in Ziel Home Furnishing on October 16, 2024 and sell it today you would lose (214.00) from holding Ziel Home Furnishing or give up 10.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Baodi Mining vs. Ziel Home Furnishing
Performance |
| Timeline |
| Xinjiang Baodi Mining |
| Ziel Home Furnishing |
Xinjiang Baodi and Ziel Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Baodi and Ziel Home
The main advantage of trading using opposite Xinjiang Baodi and Ziel Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi position performs unexpectedly, Ziel Home 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 Ziel Home will offset losses from the drop in Ziel Home's long position.| Xinjiang Baodi vs. Eastroc Beverage Group | Xinjiang Baodi vs. Shengda Mining Co | Xinjiang Baodi vs. Zhengzhou Coal Mining | Xinjiang Baodi vs. Shenyang Blue Silver |
| Ziel Home vs. Road Environment Technology | Ziel Home vs. Dazhong Transportation Group | Ziel Home vs. Unisplendour Corp | Ziel Home vs. Industrial Bank 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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