Correlation Between Xinjiang Baodi and Ningbo Fujia
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By analyzing existing cross correlation between Xinjiang Baodi Mining and Ningbo Fujia Industrial, you can compare the effects of market volatilities on Xinjiang Baodi and Ningbo Fujia 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 Ningbo Fujia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and Ningbo Fujia.
Diversification Opportunities for Xinjiang Baodi and Ningbo Fujia
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xinjiang and Ningbo is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining and Ningbo Fujia Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Fujia Industrial 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 Ningbo Fujia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Fujia Industrial has no effect on the direction of Xinjiang Baodi i.e., Xinjiang Baodi and Ningbo Fujia go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and Ningbo Fujia
Assuming the 90 days trading horizon Xinjiang Baodi Mining is expected to under-perform the Ningbo Fujia. But the stock apears to be less risky and, when comparing its historical volatility, Xinjiang Baodi Mining is 1.3 times less risky than Ningbo Fujia. The stock trades about -0.19 of its potential returns per unit of risk. The Ningbo Fujia Industrial is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,393 in Ningbo Fujia Industrial on October 17, 2024 and sell it today you would earn a total of 103.00 from holding Ningbo Fujia Industrial or generate 7.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Baodi Mining vs. Ningbo Fujia Industrial
Performance |
| Timeline |
| Xinjiang Baodi Mining |
| Ningbo Fujia Industrial |
Xinjiang Baodi and Ningbo Fujia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Baodi and Ningbo Fujia
The main advantage of trading using opposite Xinjiang Baodi and Ningbo Fujia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi position performs unexpectedly, Ningbo Fujia 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 Ningbo Fujia will offset losses from the drop in Ningbo Fujia's long position.| Xinjiang Baodi vs. Dr Peng Telecom | Xinjiang Baodi vs. Peoples Insurance of | Xinjiang Baodi vs. Iat Automobile Technology | Xinjiang Baodi vs. China Eastern Airlines |
| Ningbo Fujia vs. Xinjiang Baodi Mining | Ningbo Fujia vs. Shengda Mining Co | Ningbo Fujia vs. Shandong Longquan Pipeline | Ningbo Fujia vs. Shenyang Blue Silver |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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