Correlation Between Xinjiang Baodi and Tibet Huayu
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By analyzing existing cross correlation between Xinjiang Baodi Mining and Tibet Huayu Mining, you can compare the effects of market volatilities on Xinjiang Baodi and Tibet Huayu 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 Tibet Huayu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and Tibet Huayu.
Diversification Opportunities for Xinjiang Baodi and Tibet Huayu
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xinjiang and Tibet is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining and Tibet Huayu Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tibet Huayu 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 Tibet Huayu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tibet Huayu Mining has no effect on the direction of Xinjiang Baodi i.e., Xinjiang Baodi and Tibet Huayu go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and Tibet Huayu
Assuming the 90 days trading horizon Xinjiang Baodi is expected to generate 2.3 times less return on investment than Tibet Huayu. But when comparing it to its historical volatility, Xinjiang Baodi Mining is 1.17 times less risky than Tibet Huayu. It trades about 0.02 of its potential returns per unit of risk. Tibet Huayu Mining is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 893.00 in Tibet Huayu Mining on August 28, 2024 and sell it today you would earn a total of 457.00 from holding Tibet Huayu Mining or generate 51.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 91.23% |
| Values | Daily Returns |
Xinjiang Baodi Mining vs. Tibet Huayu Mining
Performance |
| Timeline |
| Xinjiang Baodi Mining |
| Tibet Huayu Mining |
Xinjiang Baodi and Tibet Huayu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Baodi and Tibet Huayu
The main advantage of trading using opposite Xinjiang Baodi and Tibet Huayu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi position performs unexpectedly, Tibet Huayu 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 Tibet Huayu will offset losses from the drop in Tibet Huayu'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 |
| Tibet Huayu vs. Zijin Mining Group | Tibet Huayu vs. Wanhua Chemical Group | Tibet Huayu vs. Baoshan Iron Steel | Tibet Huayu vs. Shandong Gold Mining |
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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