Correlation Between Xinjiang Baodi and GreenTech Environmental
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By analyzing existing cross correlation between Xinjiang Baodi Mining and GreenTech Environmental Co, you can compare the effects of market volatilities on Xinjiang Baodi and GreenTech Environmental 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 GreenTech Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and GreenTech Environmental.
Diversification Opportunities for Xinjiang Baodi and GreenTech Environmental
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xinjiang and GreenTech is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining and GreenTech Environmental Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenTech Environmental 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 GreenTech Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenTech Environmental has no effect on the direction of Xinjiang Baodi i.e., Xinjiang Baodi and GreenTech Environmental go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and GreenTech Environmental
Assuming the 90 days trading horizon Xinjiang Baodi Mining is expected to under-perform the GreenTech Environmental. But the stock apears to be less risky and, when comparing its historical volatility, Xinjiang Baodi Mining is 1.24 times less risky than GreenTech Environmental. The stock trades about 0.0 of its potential returns per unit of risk. The GreenTech Environmental Co is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,601 in GreenTech Environmental Co on August 31, 2024 and sell it today you would lose (26.00) from holding GreenTech Environmental Co or give up 1.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.72% |
| Values | Daily Returns |
Xinjiang Baodi Mining vs. GreenTech Environmental Co
Performance |
| Timeline |
| Xinjiang Baodi Mining |
| GreenTech Environmental |
Xinjiang Baodi and GreenTech Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Baodi and GreenTech Environmental
The main advantage of trading using opposite Xinjiang Baodi and GreenTech Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi position performs unexpectedly, GreenTech Environmental 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 GreenTech Environmental will offset losses from the drop in GreenTech Environmental's long position.| Xinjiang Baodi vs. Shanghai Jinfeng Wine | Xinjiang Baodi vs. Hainan Mining Co | Xinjiang Baodi vs. Cicc Fund Management | Xinjiang Baodi vs. Sanbo Hospital Management |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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