Correlation Between Eastern Communications and Xinjiang Baodi
Specify exactly 2 symbols:
By analyzing existing cross correlation between Eastern Communications Co and Xinjiang Baodi Mining, you can compare the effects of market volatilities on Eastern Communications 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 Eastern Communications with a short position of Xinjiang Baodi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Communications and Xinjiang Baodi.
Diversification Opportunities for Eastern Communications and Xinjiang Baodi
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Eastern and Xinjiang is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Communications Co 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 Eastern Communications 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 Eastern Communications Co 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 Eastern Communications i.e., Eastern Communications and Xinjiang Baodi go up and down completely randomly.
Pair Corralation between Eastern Communications and Xinjiang Baodi
Assuming the 90 days trading horizon Eastern Communications Co is expected to generate 0.76 times more return on investment than Xinjiang Baodi. However, Eastern Communications Co is 1.31 times less risky than Xinjiang Baodi. It trades about -0.09 of its potential returns per unit of risk. Xinjiang Baodi Mining is currently generating about -0.07 per unit of risk. If you would invest 43.00 in Eastern Communications Co on November 3, 2024 and sell it today you would lose (3.00) from holding Eastern Communications Co or give up 6.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastern Communications Co vs. Xinjiang Baodi Mining
Performance |
| Timeline |
| Eastern Communications |
| Xinjiang Baodi Mining |
Eastern Communications and Xinjiang Baodi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern Communications and Xinjiang Baodi
The main advantage of trading using opposite Eastern Communications and Xinjiang Baodi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Communications 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.| Eastern Communications vs. China World Trade | Eastern Communications vs. Chongqing Brewery Co | Eastern Communications vs. Guangdong Qunxing Toys | Eastern Communications vs. Tsingtao Brewery Co |
| Xinjiang Baodi vs. Zijin Mining Group | Xinjiang Baodi vs. Wanhua Chemical Group | Xinjiang Baodi vs. Baoshan Iron Steel | Xinjiang Baodi vs. Shandong Gold Mining |
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..
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |