Correlation Between Xinjiang Baodi and Zhongtong Guomai
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By analyzing existing cross correlation between Xinjiang Baodi Mining and Zhongtong Guomai Communication, you can compare the effects of market volatilities on Xinjiang Baodi and Zhongtong Guomai 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 Zhongtong Guomai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and Zhongtong Guomai.
Diversification Opportunities for Xinjiang Baodi and Zhongtong Guomai
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xinjiang and Zhongtong is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining and Zhongtong Guomai Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongtong Guomai Com 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 Zhongtong Guomai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongtong Guomai Com has no effect on the direction of Xinjiang Baodi i.e., Xinjiang Baodi and Zhongtong Guomai go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and Zhongtong Guomai
Assuming the 90 days trading horizon Xinjiang Baodi is expected to generate 2.09 times less return on investment than Zhongtong Guomai. But when comparing it to its historical volatility, Xinjiang Baodi Mining is 1.71 times less risky than Zhongtong Guomai. It trades about 0.11 of its potential returns per unit of risk. Zhongtong Guomai Communication is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 950.00 in Zhongtong Guomai Communication on August 30, 2024 and sell it today you would earn a total of 113.00 from holding Zhongtong Guomai Communication or generate 11.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Baodi Mining vs. Zhongtong Guomai Communication
Performance |
| Timeline |
| Xinjiang Baodi Mining |
| Zhongtong Guomai Com |
Xinjiang Baodi and Zhongtong Guomai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Baodi and Zhongtong Guomai
The main advantage of trading using opposite Xinjiang Baodi and Zhongtong Guomai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi position performs unexpectedly, Zhongtong Guomai 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 Zhongtong Guomai will offset losses from the drop in Zhongtong Guomai's long position.| Xinjiang Baodi vs. Zijin Mining Group | Xinjiang Baodi vs. Wanhua Chemical Group | Xinjiang Baodi vs. Baoshan Iron Steel | Xinjiang Baodi vs. Shandong Gold Mining |
| Zhongtong Guomai vs. JCHX Mining Management | Zhongtong Guomai vs. Chengdu Spaceon Electronics | Zhongtong Guomai vs. Huaxia Fund Management | Zhongtong Guomai vs. Anji Foodstuff 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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