Correlation Between Xinjiang Baodi and China Aluminum
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By analyzing existing cross correlation between Xinjiang Baodi Mining and China Aluminum International, you can compare the effects of market volatilities on Xinjiang Baodi and China Aluminum 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 China Aluminum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and China Aluminum.
Diversification Opportunities for Xinjiang Baodi and China Aluminum
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Xinjiang and China is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining and China Aluminum International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Aluminum Inter 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 China Aluminum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Aluminum Inter has no effect on the direction of Xinjiang Baodi i.e., Xinjiang Baodi and China Aluminum go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and China Aluminum
Assuming the 90 days trading horizon Xinjiang Baodi Mining is expected to under-perform the China Aluminum. In addition to that, Xinjiang Baodi is 1.87 times more volatile than China Aluminum International. It trades about -0.15 of its total potential returns per unit of risk. China Aluminum International is currently generating about -0.21 per unit of volatility. If you would invest 449.00 in China Aluminum International on October 26, 2024 and sell it today you would lose (32.00) from holding China Aluminum International or give up 7.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Baodi Mining vs. China Aluminum International
Performance |
| Timeline |
| Xinjiang Baodi Mining |
| China Aluminum Inter |
Xinjiang Baodi and China Aluminum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Baodi and China Aluminum
The main advantage of trading using opposite Xinjiang Baodi and China Aluminum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi position performs unexpectedly, China Aluminum 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 China Aluminum will offset losses from the drop in China Aluminum'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 |
| China Aluminum vs. Jiangxi Naipu Mining | China Aluminum vs. Jinhui Mining Co | China Aluminum vs. Shanghai V Test Semiconductor | China Aluminum vs. Xinjiang Baodi 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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