Correlation Between Sinosteel Luonai and Baoshan Iron
Specify exactly 2 symbols:
By analyzing existing cross correlation between Sinosteel Luonai Materials and Baoshan Iron Steel, you can compare the effects of market volatilities on Sinosteel Luonai 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 Sinosteel Luonai with a short position of Baoshan Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinosteel Luonai and Baoshan Iron.
Diversification Opportunities for Sinosteel Luonai and Baoshan Iron
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sinosteel and Baoshan is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Sinosteel Luonai Materials 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 Sinosteel Luonai 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 Sinosteel Luonai Materials 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 Sinosteel Luonai i.e., Sinosteel Luonai and Baoshan Iron go up and down completely randomly.
Pair Corralation between Sinosteel Luonai and Baoshan Iron
Assuming the 90 days trading horizon Sinosteel Luonai Materials is expected to under-perform the Baoshan Iron. In addition to that, Sinosteel Luonai is 1.33 times more volatile than Baoshan Iron Steel. It trades about -0.05 of its total potential returns per unit of risk. Baoshan Iron Steel is currently generating about 0.01 per unit of volatility. If you would invest 658.00 in Baoshan Iron Steel on November 27, 2024 and sell it today you would earn a total of 14.00 from holding Baoshan Iron Steel or generate 2.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinosteel Luonai Materials vs. Baoshan Iron Steel
Performance |
| Timeline |
| Sinosteel Luonai Mat |
| Baoshan Iron Steel |
Sinosteel Luonai and Baoshan Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinosteel Luonai and Baoshan Iron
The main advantage of trading using opposite Sinosteel Luonai and Baoshan Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinosteel Luonai 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.| Sinosteel Luonai vs. Malion New Materials | Sinosteel Luonai vs. Sanxiang Advanced Materials | Sinosteel Luonai vs. Tonghua Grape Wine | Sinosteel Luonai vs. Anhui Gujing Distillery |
| Baoshan Iron vs. China Sports Industry | Baoshan Iron vs. Keda Clean Energy | Baoshan Iron vs. Shaanxi Meineng Clean | Baoshan Iron vs. Guangzhou Haige Communications |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |