Correlation Between Nanjing Canatal and Baoshan Iron
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By analyzing existing cross correlation between Nanjing Canatal Data and Baoshan Iron Steel, you can compare the effects of market volatilities on Nanjing Canatal 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 Nanjing Canatal with a short position of Baoshan Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Canatal and Baoshan Iron.
Diversification Opportunities for Nanjing Canatal and Baoshan Iron
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Nanjing and Baoshan is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Canatal Data 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 Nanjing Canatal 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 Nanjing Canatal Data 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 Nanjing Canatal i.e., Nanjing Canatal and Baoshan Iron go up and down completely randomly.
Pair Corralation between Nanjing Canatal and Baoshan Iron
Assuming the 90 days trading horizon Nanjing Canatal Data is expected to generate 2.71 times more return on investment than Baoshan Iron. However, Nanjing Canatal is 2.71 times more volatile than Baoshan Iron Steel. It trades about 0.03 of its potential returns per unit of risk. Baoshan Iron Steel is currently generating about 0.05 per unit of risk. If you would invest 797.00 in Nanjing Canatal Data on November 3, 2024 and sell it today you would earn a total of 7.00 from holding Nanjing Canatal Data or generate 0.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Canatal Data vs. Baoshan Iron Steel
Performance |
| Timeline |
| Nanjing Canatal Data |
| Baoshan Iron Steel |
Nanjing Canatal and Baoshan Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Canatal and Baoshan Iron
The main advantage of trading using opposite Nanjing Canatal and Baoshan Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Canatal 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.| Nanjing Canatal vs. Sinomach Automobile Co | Nanjing Canatal vs. Bank of Communications | Nanjing Canatal vs. Heilongjiang Transport Development | Nanjing Canatal vs. Peoples Insurance of |
| Baoshan Iron vs. Zijin Mining Group | Baoshan Iron vs. Wanhua Chemical Group | Baoshan Iron vs. Shandong Gold Mining | Baoshan Iron vs. Rongsheng Petrochemical Co |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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