Correlation Between Xinjiang Baodi and Gansu Yasheng
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By analyzing existing cross correlation between Xinjiang Baodi Mining and Gansu Yasheng Industrial, you can compare the effects of market volatilities on Xinjiang Baodi and Gansu Yasheng 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 Gansu Yasheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and Gansu Yasheng.
Diversification Opportunities for Xinjiang Baodi and Gansu Yasheng
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xinjiang and Gansu is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining and Gansu Yasheng Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Yasheng Industrial 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 Gansu Yasheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Yasheng Industrial has no effect on the direction of Xinjiang Baodi i.e., Xinjiang Baodi and Gansu Yasheng go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and Gansu Yasheng
Assuming the 90 days trading horizon Xinjiang Baodi Mining is expected to under-perform the Gansu Yasheng. In addition to that, Xinjiang Baodi is 1.47 times more volatile than Gansu Yasheng Industrial. It trades about -0.09 of its total potential returns per unit of risk. Gansu Yasheng Industrial is currently generating about -0.12 per unit of volatility. If you would invest 289.00 in Gansu Yasheng Industrial on October 23, 2024 and sell it today you would lose (16.00) from holding Gansu Yasheng Industrial or give up 5.54% 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. Gansu Yasheng Industrial
Performance |
| Timeline |
| Xinjiang Baodi Mining |
| Gansu Yasheng Industrial |
Xinjiang Baodi and Gansu Yasheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Baodi and Gansu Yasheng
The main advantage of trading using opposite Xinjiang Baodi and Gansu Yasheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi position performs unexpectedly, Gansu Yasheng 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 Gansu Yasheng will offset losses from the drop in Gansu Yasheng's long position.| Xinjiang Baodi vs. Eastern Communications Co | Xinjiang Baodi vs. Wuhan Yangtze Communication | Xinjiang Baodi vs. Fujian Newland Computer | Xinjiang Baodi vs. Kuang Chi Technologies |
| Gansu Yasheng vs. Shuhua Sports Co | Gansu Yasheng vs. Sportsoul Co Ltd | Gansu Yasheng vs. Liaoning Chengda Biotechnology | Gansu Yasheng vs. Fujian Wanchen 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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