Correlation Between Xinjiang Baodi and Xinhua Winshare
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By analyzing existing cross correlation between Xinjiang Baodi Mining and Xinhua Winshare Publishing, you can compare the effects of market volatilities on Xinjiang Baodi and Xinhua Winshare 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 Xinhua Winshare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and Xinhua Winshare.
Diversification Opportunities for Xinjiang Baodi and Xinhua Winshare
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xinjiang and Xinhua is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining and Xinhua Winshare Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinhua Winshare Publ 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 Xinhua Winshare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinhua Winshare Publ has no effect on the direction of Xinjiang Baodi i.e., Xinjiang Baodi and Xinhua Winshare go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and Xinhua Winshare
Assuming the 90 days trading horizon Xinjiang Baodi Mining is expected to under-perform the Xinhua Winshare. In addition to that, Xinjiang Baodi is 2.09 times more volatile than Xinhua Winshare Publishing. It trades about -0.2 of its total potential returns per unit of risk. Xinhua Winshare Publishing is currently generating about -0.23 per unit of volatility. If you would invest 1,588 in Xinhua Winshare Publishing on October 28, 2024 and sell it today you would lose (107.00) from holding Xinhua Winshare Publishing or give up 6.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Baodi Mining vs. Xinhua Winshare Publishing
Performance |
| Timeline |
| Xinjiang Baodi Mining |
| Xinhua Winshare Publ |
Xinjiang Baodi and Xinhua Winshare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Baodi and Xinhua Winshare
The main advantage of trading using opposite Xinjiang Baodi and Xinhua Winshare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi position performs unexpectedly, Xinhua Winshare 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 Xinhua Winshare will offset losses from the drop in Xinhua Winshare's long position.| Xinjiang Baodi vs. Hunan Investment Group | Xinjiang Baodi vs. Shaanxi Energy Investment | Xinjiang Baodi vs. State Grid InformationCommunication | Xinjiang Baodi vs. Harbin Hatou Investment |
| Xinhua Winshare vs. Anhui Huaheng Biotechnology | Xinhua Winshare vs. Postal Savings Bank | Xinhua Winshare vs. Xiandai Investment Co | Xinhua Winshare vs. Liaoning Chengda Biotechnology |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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