Correlation Between Xinjiang Baodi and Shandong Gold
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By analyzing existing cross correlation between Xinjiang Baodi Mining and Shandong Gold Mining, you can compare the effects of market volatilities on Xinjiang Baodi and Shandong Gold 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 Shandong Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and Shandong Gold.
Diversification Opportunities for Xinjiang Baodi and Shandong Gold
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Xinjiang and Shandong is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining and Shandong Gold Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Gold Mining 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 Shandong Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Gold Mining has no effect on the direction of Xinjiang Baodi i.e., Xinjiang Baodi and Shandong Gold go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and Shandong Gold
Assuming the 90 days trading horizon Xinjiang Baodi Mining is expected to generate 1.3 times more return on investment than Shandong Gold. However, Xinjiang Baodi is 1.3 times more volatile than Shandong Gold Mining. It trades about 0.04 of its potential returns per unit of risk. Shandong Gold Mining is currently generating about -0.05 per unit of risk. If you would invest 561.00 in Xinjiang Baodi Mining on October 26, 2024 and sell it today you would earn a total of 49.00 from holding Xinjiang Baodi Mining or generate 8.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Baodi Mining vs. Shandong Gold Mining
Performance |
| Timeline |
| Xinjiang Baodi Mining |
| Shandong Gold Mining |
Xinjiang Baodi and Shandong Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Baodi and Shandong Gold
The main advantage of trading using opposite Xinjiang Baodi and Shandong Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi position performs unexpectedly, Shandong Gold 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 Shandong Gold will offset losses from the drop in Shandong Gold'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 |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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