Correlation Between Xinjiang Baodi and Anhui Huaheng
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By analyzing existing cross correlation between Xinjiang Baodi Mining and Anhui Huaheng Biotechnology, you can compare the effects of market volatilities on Xinjiang Baodi and Anhui Huaheng 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 Anhui Huaheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and Anhui Huaheng.
Diversification Opportunities for Xinjiang Baodi and Anhui Huaheng
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Xinjiang and Anhui is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining and Anhui Huaheng Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Huaheng Biotec 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 Anhui Huaheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Huaheng Biotec has no effect on the direction of Xinjiang Baodi i.e., Xinjiang Baodi and Anhui Huaheng go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and Anhui Huaheng
Assuming the 90 days trading horizon Xinjiang Baodi Mining is expected to generate 0.56 times more return on investment than Anhui Huaheng. However, Xinjiang Baodi Mining is 1.78 times less risky than Anhui Huaheng. It trades about 0.04 of its potential returns per unit of risk. Anhui Huaheng Biotechnology is currently generating about -0.06 per unit of risk. If you would invest 561.00 in Xinjiang Baodi Mining on October 25, 2024 and sell it today you would earn a total of 51.00 from holding Xinjiang Baodi Mining or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Baodi Mining vs. Anhui Huaheng Biotechnology
Performance |
| Timeline |
| Xinjiang Baodi Mining |
| Anhui Huaheng Biotec |
Xinjiang Baodi and Anhui Huaheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Baodi and Anhui Huaheng
The main advantage of trading using opposite Xinjiang Baodi and Anhui Huaheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi position performs unexpectedly, Anhui Huaheng 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 Anhui Huaheng will offset losses from the drop in Anhui Huaheng's long position.| Xinjiang Baodi vs. Zijin Mining Group | Xinjiang Baodi vs. Wanhua Chemical Group | Xinjiang Baodi vs. Baoshan Iron Steel | Xinjiang Baodi vs. Rongsheng Petrochemical Co |
| Anhui Huaheng vs. Holitech Technology Co | Anhui Huaheng vs. Kangping Technology Co | Anhui Huaheng vs. Olympic Circuit Technology | Anhui Huaheng vs. HanS Laser Tech |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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