Correlation Between Qingdao Port and Xinjiang Baodi
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By analyzing existing cross correlation between Qingdao Port International and Xinjiang Baodi Mining, you can compare the effects of market volatilities on Qingdao Port and Xinjiang Baodi 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 Qingdao Port with a short position of Xinjiang Baodi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Port and Xinjiang Baodi.
Diversification Opportunities for Qingdao Port and Xinjiang Baodi
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Qingdao and Xinjiang is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Port International and Xinjiang Baodi Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Baodi Mining and Qingdao Port 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 Qingdao Port International are associated (or correlated) with Xinjiang Baodi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Baodi Mining has no effect on the direction of Qingdao Port i.e., Qingdao Port and Xinjiang Baodi go up and down completely randomly.
Pair Corralation between Qingdao Port and Xinjiang Baodi
Assuming the 90 days trading horizon Qingdao Port International is expected to under-perform the Xinjiang Baodi. In addition to that, Qingdao Port is 1.12 times more volatile than Xinjiang Baodi Mining. It trades about -0.31 of its total potential returns per unit of risk. Xinjiang Baodi Mining is currently generating about -0.13 per unit of volatility. If you would invest 619.00 in Xinjiang Baodi Mining on December 4, 2024 and sell it today you would lose (16.00) from holding Xinjiang Baodi Mining or give up 2.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Qingdao Port International vs. Xinjiang Baodi Mining
Performance |
| Timeline |
| Qingdao Port Interna |
| Xinjiang Baodi Mining |
Qingdao Port and Xinjiang Baodi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Port and Xinjiang Baodi
The main advantage of trading using opposite Qingdao Port and Xinjiang Baodi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Port position performs unexpectedly, Xinjiang Baodi 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 Xinjiang Baodi will offset losses from the drop in Xinjiang Baodi's long position.| Qingdao Port vs. Shanghai Broadband Technology | Qingdao Port vs. Silkroad Visual Technology | Qingdao Port vs. Road Environment Technology | Qingdao Port vs. Zhongshan Public Utilities |
| Xinjiang Baodi vs. Aluminum Corp of | Xinjiang Baodi vs. Hefei Metalforming Mach | Xinjiang Baodi vs. Shanghai Rightongene Biotechnology | Xinjiang Baodi vs. Guangdong Marubi Biotechnology |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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