Correlation Between Xinjiang Baodi and Fujian Oriental
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By analyzing existing cross correlation between Xinjiang Baodi Mining and Fujian Oriental Silver, you can compare the effects of market volatilities on Xinjiang Baodi and Fujian Oriental 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 Fujian Oriental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and Fujian Oriental.
Diversification Opportunities for Xinjiang Baodi and Fujian Oriental
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xinjiang and Fujian is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining and Fujian Oriental Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Oriental Silver 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 Fujian Oriental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Oriental Silver has no effect on the direction of Xinjiang Baodi i.e., Xinjiang Baodi and Fujian Oriental go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and Fujian Oriental
Assuming the 90 days trading horizon Xinjiang Baodi Mining is expected to generate 0.76 times more return on investment than Fujian Oriental. However, Xinjiang Baodi Mining is 1.31 times less risky than Fujian Oriental. It trades about 0.12 of its potential returns per unit of risk. Fujian Oriental Silver is currently generating about 0.04 per unit of risk. If you would invest 647.00 in Xinjiang Baodi Mining on September 13, 2024 and sell it today you would earn a total of 40.00 from holding Xinjiang Baodi Mining or generate 6.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Baodi Mining vs. Fujian Oriental Silver
Performance |
| Timeline |
| Xinjiang Baodi Mining |
| Fujian Oriental Silver |
Xinjiang Baodi and Fujian Oriental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Baodi and Fujian Oriental
The main advantage of trading using opposite Xinjiang Baodi and Fujian Oriental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi position performs unexpectedly, Fujian Oriental 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 Fujian Oriental will offset losses from the drop in Fujian Oriental'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 |
| Fujian Oriental vs. Eastern Communications Co | Fujian Oriental vs. Guangzhou Haige Communications | Fujian Oriental vs. Jiangsu Jinling Sports | Fujian Oriental vs. Sinomach Automobile 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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