Correlation Between Xinjiang Baodi and Shanghai Rongtai
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xinjiang Baodi Mining and Shanghai Rongtai Health, you can compare the effects of market volatilities on Xinjiang Baodi and Shanghai Rongtai 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 Shanghai Rongtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and Shanghai Rongtai.
Diversification Opportunities for Xinjiang Baodi and Shanghai Rongtai
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xinjiang and Shanghai is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining and Shanghai Rongtai Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Rongtai Health 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 Shanghai Rongtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Rongtai Health has no effect on the direction of Xinjiang Baodi i.e., Xinjiang Baodi and Shanghai Rongtai go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and Shanghai Rongtai
Assuming the 90 days trading horizon Xinjiang Baodi Mining is expected to under-perform the Shanghai Rongtai. In addition to that, Xinjiang Baodi is 1.49 times more volatile than Shanghai Rongtai Health. It trades about -0.17 of its total potential returns per unit of risk. Shanghai Rongtai Health is currently generating about -0.24 per unit of volatility. If you would invest 1,532 in Shanghai Rongtai Health on October 18, 2024 and sell it today you would lose (156.00) from holding Shanghai Rongtai Health or give up 10.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Baodi Mining vs. Shanghai Rongtai Health
Performance |
| Timeline |
| Xinjiang Baodi Mining |
| Shanghai Rongtai Health |
Xinjiang Baodi and Shanghai Rongtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Baodi and Shanghai Rongtai
The main advantage of trading using opposite Xinjiang Baodi and Shanghai Rongtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi position performs unexpectedly, Shanghai Rongtai 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 Shanghai Rongtai will offset losses from the drop in Shanghai Rongtai'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 |
| Shanghai Rongtai vs. Rising Nonferrous Metals | Shanghai Rongtai vs. China Eastern Airlines | Shanghai Rongtai vs. HUAQIN TECHNOLOGY LTD | Shanghai Rongtai vs. Xinjiang Baodi Mining |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |