Correlation Between Xinjiang Baodi and Beijing Roborock
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By analyzing existing cross correlation between Xinjiang Baodi Mining and Beijing Roborock Technology, you can compare the effects of market volatilities on Xinjiang Baodi and Beijing Roborock 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 Beijing Roborock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and Beijing Roborock.
Diversification Opportunities for Xinjiang Baodi and Beijing Roborock
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Xinjiang and Beijing is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining and Beijing Roborock Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Roborock Tec 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 Beijing Roborock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Roborock Tec has no effect on the direction of Xinjiang Baodi i.e., Xinjiang Baodi and Beijing Roborock go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and Beijing Roborock
Assuming the 90 days trading horizon Xinjiang Baodi is expected to generate 1.36 times less return on investment than Beijing Roborock. But when comparing it to its historical volatility, Xinjiang Baodi Mining is 1.21 times less risky than Beijing Roborock. It trades about 0.02 of its potential returns per unit of risk. Beijing Roborock Technology is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 21,349 in Beijing Roborock Technology on October 11, 2024 and sell it today you would earn a total of 2,742 from holding Beijing Roborock Technology or generate 12.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 93.7% |
| Values | Daily Returns |
Xinjiang Baodi Mining vs. Beijing Roborock Technology
Performance |
| Timeline |
| Xinjiang Baodi Mining |
| Beijing Roborock Tec |
Xinjiang Baodi and Beijing Roborock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Baodi and Beijing Roborock
The main advantage of trading using opposite Xinjiang Baodi and Beijing Roborock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi position performs unexpectedly, Beijing Roborock 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 Beijing Roborock will offset losses from the drop in Beijing Roborock'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 |
| Beijing Roborock vs. China Everbright Bank | Beijing Roborock vs. Jiajia Food Group | Beijing Roborock vs. Bank of Suzhou | Beijing Roborock 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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