Correlation Between Xinjiang Baodi and Huafa Industrial
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By analyzing existing cross correlation between Xinjiang Baodi Mining and Huafa Industrial Co, you can compare the effects of market volatilities on Xinjiang Baodi and Huafa Industrial 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 Huafa Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and Huafa Industrial.
Diversification Opportunities for Xinjiang Baodi and Huafa Industrial
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xinjiang and Huafa is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining and Huafa Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huafa 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 Huafa Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huafa Industrial has no effect on the direction of Xinjiang Baodi i.e., Xinjiang Baodi and Huafa Industrial go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and Huafa Industrial
Assuming the 90 days trading horizon Xinjiang Baodi Mining is expected to generate 0.92 times more return on investment than Huafa Industrial. However, Xinjiang Baodi Mining is 1.09 times less risky than Huafa Industrial. It trades about 0.0 of its potential returns per unit of risk. Huafa Industrial Co is currently generating about -0.03 per unit of risk. If you would invest 769.00 in Xinjiang Baodi Mining on August 31, 2024 and sell it today you would lose (98.00) from holding Xinjiang Baodi Mining or give up 12.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Baodi Mining vs. Huafa Industrial Co
Performance |
| Timeline |
| Xinjiang Baodi Mining |
| Huafa Industrial |
Xinjiang Baodi and Huafa Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Baodi and Huafa Industrial
The main advantage of trading using opposite Xinjiang Baodi and Huafa Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi position performs unexpectedly, Huafa Industrial 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 Huafa Industrial will offset losses from the drop in Huafa Industrial's long position.| Xinjiang Baodi vs. Shanghai Jinfeng Wine | Xinjiang Baodi vs. Hainan Mining Co | Xinjiang Baodi vs. Cicc Fund Management | Xinjiang Baodi vs. Sanbo Hospital Management |
| Huafa Industrial vs. Kweichow Moutai Co | Huafa Industrial vs. Contemporary Amperex Technology | Huafa Industrial vs. G bits Network Technology | Huafa Industrial vs. BYD Co Ltd |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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