Correlation Between Zhejiang Huayou and Baoshan Iron
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By analyzing existing cross correlation between Zhejiang Huayou Cobalt and Baoshan Iron Steel, you can compare the effects of market volatilities on Zhejiang Huayou and Baoshan Iron 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 Zhejiang Huayou with a short position of Baoshan Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Huayou and Baoshan Iron.
Diversification Opportunities for Zhejiang Huayou and Baoshan Iron
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zhejiang and Baoshan is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Huayou Cobalt and Baoshan Iron Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baoshan Iron Steel and Zhejiang Huayou 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 Zhejiang Huayou Cobalt are associated (or correlated) with Baoshan Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baoshan Iron Steel has no effect on the direction of Zhejiang Huayou i.e., Zhejiang Huayou and Baoshan Iron go up and down completely randomly.
Pair Corralation between Zhejiang Huayou and Baoshan Iron
Assuming the 90 days trading horizon Zhejiang Huayou Cobalt is expected to under-perform the Baoshan Iron. In addition to that, Zhejiang Huayou is 1.0 times more volatile than Baoshan Iron Steel. It trades about -0.15 of its total potential returns per unit of risk. Baoshan Iron Steel is currently generating about 0.1 per unit of volatility. If you would invest 662.00 in Baoshan Iron Steel on October 30, 2024 and sell it today you would earn a total of 39.00 from holding Baoshan Iron Steel or generate 5.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Huayou Cobalt vs. Baoshan Iron Steel
Performance |
| Timeline |
| Zhejiang Huayou Cobalt |
| Baoshan Iron Steel |
Zhejiang Huayou and Baoshan Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Huayou and Baoshan Iron
The main advantage of trading using opposite Zhejiang Huayou and Baoshan Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Huayou position performs unexpectedly, Baoshan Iron 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 Baoshan Iron will offset losses from the drop in Baoshan Iron's long position.| Zhejiang Huayou vs. Zijin Mining Group | Zhejiang Huayou vs. Wanhua Chemical Group | Zhejiang Huayou vs. Baoshan Iron Steel | Zhejiang Huayou vs. Shandong Gold Mining |
| Baoshan Iron vs. Beijing Seeyon Internet | Baoshan Iron vs. Easyhome New Retail | Baoshan Iron vs. Strait Innovation Internet | Baoshan Iron vs. China Greatwall Computer |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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