Correlation Between Xinjiang Baodi and Hygon Information
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By analyzing existing cross correlation between Xinjiang Baodi Mining and Hygon Information Technology, you can compare the effects of market volatilities on Xinjiang Baodi and Hygon Information 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 Hygon Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and Hygon Information.
Diversification Opportunities for Xinjiang Baodi and Hygon Information
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Xinjiang and Hygon is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining and Hygon Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hygon Information 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 Hygon Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hygon Information has no effect on the direction of Xinjiang Baodi i.e., Xinjiang Baodi and Hygon Information go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and Hygon Information
Assuming the 90 days trading horizon Xinjiang Baodi is expected to generate 5.21 times less return on investment than Hygon Information. But when comparing it to its historical volatility, Xinjiang Baodi Mining is 1.38 times less risky than Hygon Information. It trades about 0.02 of its potential returns per unit of risk. Hygon Information Technology is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 4,411 in Hygon Information Technology on October 12, 2024 and sell it today you would earn a total of 10,409 from holding Hygon Information Technology or generate 235.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 93.71% |
| Values | Daily Returns |
Xinjiang Baodi Mining vs. Hygon Information Technology
Performance |
| Timeline |
| Xinjiang Baodi Mining |
| Hygon Information |
Xinjiang Baodi and Hygon Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Baodi and Hygon Information
The main advantage of trading using opposite Xinjiang Baodi and Hygon Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi position performs unexpectedly, Hygon Information 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 Hygon Information will offset losses from the drop in Hygon Information's long position.| Xinjiang Baodi vs. Beijing Jiaman Dress | Xinjiang Baodi vs. Qiaoyin Environmental Tech | Xinjiang Baodi vs. Easyhome New Retail | Xinjiang Baodi vs. Shandong Iron and |
| Hygon Information vs. Changjiang Publishing Media | Hygon Information vs. Guangdong Jinma Entertainment | Hygon Information vs. Ingenic Semiconductor | Hygon Information vs. Anhui Xinhua Media |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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