Correlation Between Shanghai Newtouch and Xinjiang Baodi
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By analyzing existing cross correlation between Shanghai Newtouch Software and Xinjiang Baodi Mining, you can compare the effects of market volatilities on Shanghai Newtouch 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 Shanghai Newtouch with a short position of Xinjiang Baodi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Newtouch and Xinjiang Baodi.
Diversification Opportunities for Shanghai Newtouch and Xinjiang Baodi
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and Xinjiang is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Newtouch Software 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 Shanghai Newtouch 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 Shanghai Newtouch Software 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 Shanghai Newtouch i.e., Shanghai Newtouch and Xinjiang Baodi go up and down completely randomly.
Pair Corralation between Shanghai Newtouch and Xinjiang Baodi
Assuming the 90 days trading horizon Shanghai Newtouch Software is expected to under-perform the Xinjiang Baodi. In addition to that, Shanghai Newtouch is 1.07 times more volatile than Xinjiang Baodi Mining. It trades about -0.36 of its total potential returns per unit of risk. Xinjiang Baodi Mining is currently generating about -0.08 per unit of volatility. If you would invest 662.00 in Xinjiang Baodi Mining on October 23, 2024 and sell it today you would lose (38.00) from holding Xinjiang Baodi Mining or give up 5.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Newtouch Software vs. Xinjiang Baodi Mining
Performance |
| Timeline |
| Shanghai Newtouch |
| Xinjiang Baodi Mining |
Shanghai Newtouch and Xinjiang Baodi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Newtouch and Xinjiang Baodi
The main advantage of trading using opposite Shanghai Newtouch and Xinjiang Baodi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Newtouch 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.| Shanghai Newtouch vs. Aba Chemicals Corp | Shanghai Newtouch vs. HeNan Splendor Science | Shanghai Newtouch vs. Hubei Xingfa Chemicals | Shanghai Newtouch vs. Dymatic Chemicals |
| Xinjiang Baodi vs. Eastern Communications Co | Xinjiang Baodi vs. Wuhan Yangtze Communication | Xinjiang Baodi vs. Fujian Newland Computer | Xinjiang Baodi vs. Kuang Chi Technologies |
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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