Correlation Between Xinjiang Baodi and Cultural Investment
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By analyzing existing cross correlation between Xinjiang Baodi Mining and Cultural Investment Holdings, you can compare the effects of market volatilities on Xinjiang Baodi and Cultural Investment 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 Cultural Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and Cultural Investment.
Diversification Opportunities for Xinjiang Baodi and Cultural Investment
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xinjiang and Cultural is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining and Cultural Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cultural Investment 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 Cultural Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cultural Investment has no effect on the direction of Xinjiang Baodi i.e., Xinjiang Baodi and Cultural Investment go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and Cultural Investment
Assuming the 90 days trading horizon Xinjiang Baodi is expected to generate 1.09 times less return on investment than Cultural Investment. But when comparing it to its historical volatility, Xinjiang Baodi Mining is 1.36 times less risky than Cultural Investment. It trades about 0.02 of its potential returns per unit of risk. Cultural Investment Holdings is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 231.00 in Cultural Investment Holdings on October 23, 2024 and sell it today you would lose (23.00) from holding Cultural Investment Holdings or give up 9.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.39% |
| Values | Daily Returns |
Xinjiang Baodi Mining vs. Cultural Investment Holdings
Performance |
| Timeline |
| Xinjiang Baodi Mining |
| Cultural Investment |
Xinjiang Baodi and Cultural Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Baodi and Cultural Investment
The main advantage of trading using opposite Xinjiang Baodi and Cultural Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi position performs unexpectedly, Cultural Investment 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 Cultural Investment will offset losses from the drop in Cultural Investment'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 |
| Cultural Investment vs. Nexchip Semiconductor Corp | Cultural Investment vs. Shannon Semiconductor Technology | Cultural Investment vs. Xinjiang Baodi Mining | Cultural Investment vs. Shengda Mining 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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