Correlation Between Xinjiang Baodi and Changjiang Publishing
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By analyzing existing cross correlation between Xinjiang Baodi Mining and Changjiang Publishing Media, you can compare the effects of market volatilities on Xinjiang Baodi and Changjiang Publishing 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 Changjiang Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and Changjiang Publishing.
Diversification Opportunities for Xinjiang Baodi and Changjiang Publishing
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xinjiang and Changjiang is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining and Changjiang Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changjiang Publishing 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 Changjiang Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changjiang Publishing has no effect on the direction of Xinjiang Baodi i.e., Xinjiang Baodi and Changjiang Publishing go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and Changjiang Publishing
Assuming the 90 days trading horizon Xinjiang Baodi Mining is expected to generate 1.52 times more return on investment than Changjiang Publishing. However, Xinjiang Baodi is 1.52 times more volatile than Changjiang Publishing Media. It trades about -0.05 of its potential returns per unit of risk. Changjiang Publishing Media is currently generating about -0.16 per unit of risk. If you would invest 693.00 in Xinjiang Baodi Mining on October 14, 2024 and sell it today you would lose (22.00) from holding Xinjiang Baodi Mining or give up 3.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Xinjiang Baodi Mining vs. Changjiang Publishing Media
Performance |
| Timeline |
| Xinjiang Baodi Mining |
| Changjiang Publishing |
Xinjiang Baodi and Changjiang Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Baodi and Changjiang Publishing
The main advantage of trading using opposite Xinjiang Baodi and Changjiang Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi position performs unexpectedly, Changjiang Publishing 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 Changjiang Publishing will offset losses from the drop in Changjiang Publishing's long position.| Xinjiang Baodi vs. Jinhe Biotechnology Co | Xinjiang Baodi vs. Fibocom Wireless | Xinjiang Baodi vs. Guangzhou Haige Communications | Xinjiang Baodi vs. Guangzhou Zhujiang Brewery |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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