Correlation Between Xinjiang Baodi and Tangshan Port
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By analyzing existing cross correlation between Xinjiang Baodi Mining and Tangshan Port Group, you can compare the effects of market volatilities on Xinjiang Baodi and Tangshan Port 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 Tangshan Port. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and Tangshan Port.
Diversification Opportunities for Xinjiang Baodi and Tangshan Port
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Xinjiang and Tangshan is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining and Tangshan Port Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tangshan Port Group 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 Tangshan Port. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tangshan Port Group has no effect on the direction of Xinjiang Baodi i.e., Xinjiang Baodi and Tangshan Port go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and Tangshan Port
Assuming the 90 days trading horizon Xinjiang Baodi Mining is expected to under-perform the Tangshan Port. In addition to that, Xinjiang Baodi is 1.42 times more volatile than Tangshan Port Group. It trades about -0.04 of its total potential returns per unit of risk. Tangshan Port Group is currently generating about 0.02 per unit of volatility. If you would invest 451.00 in Tangshan Port Group on November 4, 2024 and sell it today you would earn a total of 1.00 from holding Tangshan Port Group or generate 0.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Baodi Mining vs. Tangshan Port Group
Performance |
| Timeline |
| Xinjiang Baodi Mining |
| Tangshan Port Group |
Xinjiang Baodi and Tangshan Port Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Baodi and Tangshan Port
The main advantage of trading using opposite Xinjiang Baodi and Tangshan Port positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi position performs unexpectedly, Tangshan Port 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 Tangshan Port will offset losses from the drop in Tangshan Port'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 |
| Tangshan Port vs. Juneyao Airlines | Tangshan Port vs. Beijing Jiaman Dress | Tangshan Port vs. Road Environment Technology | Tangshan Port vs. China Eastern Airlines |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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