Correlation Between Xinjiang Baodi and Nanjing OLO
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By analyzing existing cross correlation between Xinjiang Baodi Mining and Nanjing OLO Home, you can compare the effects of market volatilities on Xinjiang Baodi and Nanjing OLO 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 Nanjing OLO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and Nanjing OLO.
Diversification Opportunities for Xinjiang Baodi and Nanjing OLO
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xinjiang and Nanjing is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining and Nanjing OLO Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing OLO Home 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 Nanjing OLO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing OLO Home has no effect on the direction of Xinjiang Baodi i.e., Xinjiang Baodi and Nanjing OLO go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and Nanjing OLO
Assuming the 90 days trading horizon Xinjiang Baodi Mining is expected to under-perform the Nanjing OLO. In addition to that, Xinjiang Baodi is 1.24 times more volatile than Nanjing OLO Home. It trades about -0.19 of its total potential returns per unit of risk. Nanjing OLO Home is currently generating about 0.35 per unit of volatility. If you would invest 568.00 in Nanjing OLO Home on November 6, 2024 and sell it today you would earn a total of 63.00 from holding Nanjing OLO Home or generate 11.09% 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. Nanjing OLO Home
Performance |
| Timeline |
| Xinjiang Baodi Mining |
| Nanjing OLO Home |
Xinjiang Baodi and Nanjing OLO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Baodi and Nanjing OLO
The main advantage of trading using opposite Xinjiang Baodi and Nanjing OLO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi position performs unexpectedly, Nanjing OLO 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 Nanjing OLO will offset losses from the drop in Nanjing OLO's long position.| Xinjiang Baodi vs. Sublime China Information | Xinjiang Baodi vs. Henan Shuanghui Investment | Xinjiang Baodi vs. ButOne Information Corp | Xinjiang Baodi vs. Qiming Information Technology |
| Nanjing OLO vs. Zhejiang Kingland Pipeline | Nanjing OLO vs. Zhengzhou Coal Mining | Nanjing OLO vs. BTG Hotels Group | Nanjing OLO vs. Shengda Mining Co |
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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