Correlation Between Xinjiang Baodi and China World
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By analyzing existing cross correlation between Xinjiang Baodi Mining and China World Trade, you can compare the effects of market volatilities on Xinjiang Baodi and China World 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 China World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and China World.
Diversification Opportunities for Xinjiang Baodi and China World
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Xinjiang and China is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining and China World Trade in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China World Trade 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 China World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China World Trade has no effect on the direction of Xinjiang Baodi i.e., Xinjiang Baodi and China World go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and China World
Assuming the 90 days trading horizon Xinjiang Baodi Mining is expected to generate 1.9 times more return on investment than China World. However, Xinjiang Baodi is 1.9 times more volatile than China World Trade. It trades about 0.13 of its potential returns per unit of risk. China World Trade is currently generating about -0.05 per unit of risk. If you would invest 630.00 in Xinjiang Baodi Mining on September 3, 2024 and sell it today you would earn a total of 41.00 from holding Xinjiang Baodi Mining or generate 6.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Baodi Mining vs. China World Trade
Performance |
| Timeline |
| Xinjiang Baodi Mining |
| China World Trade |
Xinjiang Baodi and China World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Baodi and China World
The main advantage of trading using opposite Xinjiang Baodi and China World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi position performs unexpectedly, China World 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 China World will offset losses from the drop in China World's long position.| Xinjiang Baodi vs. Zijin Mining Group | Xinjiang Baodi vs. Baoshan Iron Steel | Xinjiang Baodi vs. Rongsheng Petrochemical Co | Xinjiang Baodi vs. Hoshine Silicon Ind |
| China World vs. Industrial and Commercial | China World vs. China Construction Bank | China World vs. Bank of China | China World vs. Agricultural Bank of |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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