Correlation Between Xinjiang Baodi and Yonyou Auto
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By analyzing existing cross correlation between Xinjiang Baodi Mining and Yonyou Auto Information, you can compare the effects of market volatilities on Xinjiang Baodi and Yonyou Auto 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 Yonyou Auto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and Yonyou Auto.
Diversification Opportunities for Xinjiang Baodi and Yonyou Auto
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xinjiang and Yonyou is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining and Yonyou Auto Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yonyou Auto 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 Yonyou Auto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yonyou Auto Information has no effect on the direction of Xinjiang Baodi i.e., Xinjiang Baodi and Yonyou Auto go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and Yonyou Auto
Assuming the 90 days trading horizon Xinjiang Baodi Mining is expected to generate 1.19 times more return on investment than Yonyou Auto. However, Xinjiang Baodi is 1.19 times more volatile than Yonyou Auto Information. It trades about -0.01 of its potential returns per unit of risk. Yonyou Auto Information is currently generating about -0.06 per unit of risk. If you would invest 645.00 in Xinjiang Baodi Mining on November 6, 2024 and sell it today you would lose (25.00) from holding Xinjiang Baodi Mining or give up 3.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Baodi Mining vs. Yonyou Auto Information
Performance |
| Timeline |
| Xinjiang Baodi Mining |
| Yonyou Auto Information |
Xinjiang Baodi and Yonyou Auto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Baodi and Yonyou Auto
The main advantage of trading using opposite Xinjiang Baodi and Yonyou Auto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi position performs unexpectedly, Yonyou Auto 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 Yonyou Auto will offset losses from the drop in Yonyou Auto's long position.| Xinjiang Baodi vs. Sublime China Information | Xinjiang Baodi vs. Henan Shuanghui Investment | Xinjiang Baodi vs. ButOne Information Corp | Xinjiang Baodi vs. Qiming Information Technology |
| Yonyou Auto vs. Kangping Technology Co | Yonyou Auto vs. Olympic Circuit Technology | Yonyou Auto vs. Sharetronic Data Technology | Yonyou Auto vs. Eyebright Medical Technology |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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