Correlation Between Xinjiang Baodi and Eastern Air
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By analyzing existing cross correlation between Xinjiang Baodi Mining and Eastern Air Logistics, you can compare the effects of market volatilities on Xinjiang Baodi and Eastern Air 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 Eastern Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and Eastern Air.
Diversification Opportunities for Xinjiang Baodi and Eastern Air
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xinjiang and Eastern is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining and Eastern Air Logistics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastern Air Logistics 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 Eastern Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastern Air Logistics has no effect on the direction of Xinjiang Baodi i.e., Xinjiang Baodi and Eastern Air go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and Eastern Air
Assuming the 90 days trading horizon Xinjiang Baodi Mining is expected to generate 1.27 times more return on investment than Eastern Air. However, Xinjiang Baodi is 1.27 times more volatile than Eastern Air Logistics. It trades about 0.02 of its potential returns per unit of risk. Eastern Air Logistics is currently generating about 0.01 per unit of risk. If you would invest 604.00 in Xinjiang Baodi Mining on September 3, 2024 and sell it today you would earn a total of 67.00 from holding Xinjiang Baodi Mining or generate 11.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 88.05% |
| Values | Daily Returns |
Xinjiang Baodi Mining vs. Eastern Air Logistics
Performance |
| Timeline |
| Xinjiang Baodi Mining |
| Eastern Air Logistics |
Xinjiang Baodi and Eastern Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Baodi and Eastern Air
The main advantage of trading using opposite Xinjiang Baodi and Eastern Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi position performs unexpectedly, Eastern Air 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 Eastern Air will offset losses from the drop in Eastern Air's long position.| Xinjiang Baodi vs. Zijin Mining Group | Xinjiang Baodi vs. Baoshan Iron Steel | Xinjiang Baodi vs. Rongsheng Petrochemical Co | Xinjiang Baodi vs. Hoshine Silicon Ind |
| Eastern Air vs. Fiberhome Telecommunication Technologies | Eastern Air vs. Ningbo Tech Bank Co | Eastern Air vs. Unisplendour Corp | Eastern Air vs. China Construction Bank |
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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