Correlation Between Xinjiang Baodi and Hainan Mining
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By analyzing existing cross correlation between Xinjiang Baodi Mining and Hainan Mining Co, you can compare the effects of market volatilities on Xinjiang Baodi and Hainan Mining 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 Hainan Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and Hainan Mining.
Diversification Opportunities for Xinjiang Baodi and Hainan Mining
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xinjiang and Hainan is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining and Hainan Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan 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 Hainan Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Mining has no effect on the direction of Xinjiang Baodi i.e., Xinjiang Baodi and Hainan Mining go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and Hainan Mining
Assuming the 90 days trading horizon Xinjiang Baodi Mining is expected to generate 1.72 times more return on investment than Hainan Mining. However, Xinjiang Baodi is 1.72 times more volatile than Hainan Mining Co. It trades about -0.08 of its potential returns per unit of risk. Hainan Mining Co is currently generating about -0.26 per unit of risk. If you would invest 662.00 in Xinjiang Baodi Mining on October 23, 2024 and sell it today you would lose (38.00) from holding Xinjiang Baodi Mining or give up 5.74% 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. Hainan Mining Co
Performance |
| Timeline |
| Xinjiang Baodi Mining |
| Hainan Mining |
Xinjiang Baodi and Hainan Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Baodi and Hainan Mining
The main advantage of trading using opposite Xinjiang Baodi and Hainan Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi position performs unexpectedly, Hainan Mining 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 Hainan Mining will offset losses from the drop in Hainan Mining's long position.| Xinjiang Baodi vs. Eastern Communications Co | Xinjiang Baodi vs. Wuhan Yangtze Communication | Xinjiang Baodi vs. Fujian Newland Computer | Xinjiang Baodi vs. Kuang Chi Technologies |
| Hainan Mining vs. Dongfeng Automobile Co | Hainan Mining vs. Central Plains Environment | Hainan Mining vs. Fujian Nanwang Environment | Hainan Mining vs. Baoshan Iron Steel |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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