Correlation Between Xinjiang Baodi and Ningbo Ligong
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By analyzing existing cross correlation between Xinjiang Baodi Mining and Ningbo Ligong Online, you can compare the effects of market volatilities on Xinjiang Baodi and Ningbo Ligong 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 Xinjiang Baodi with a short position of Ningbo Ligong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and Ningbo Ligong.
Diversification Opportunities for Xinjiang Baodi and Ningbo Ligong
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xinjiang and Ningbo is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining and Ningbo Ligong Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Ligong Online and Xinjiang Baodi 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 Xinjiang Baodi Mining are associated (or correlated) with Ningbo Ligong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Ligong Online has no effect on the direction of Xinjiang Baodi i.e., Xinjiang Baodi and Ningbo Ligong go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and Ningbo Ligong
Assuming the 90 days trading horizon Xinjiang Baodi Mining is expected to generate 1.2 times more return on investment than Ningbo Ligong. However, Xinjiang Baodi is 1.2 times more volatile than Ningbo Ligong Online. It trades about 0.0 of its potential returns per unit of risk. Ningbo Ligong Online is currently generating about -0.11 per unit of risk. If you would invest 665.00 in Xinjiang Baodi Mining on September 25, 2024 and sell it today you would lose (3.00) from holding Xinjiang Baodi Mining or give up 0.45% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Xinjiang Baodi Mining vs. Ningbo Ligong Online
Performance |
Timeline |
Xinjiang Baodi Mining |
Ningbo Ligong Online |
Xinjiang Baodi and Ningbo Ligong Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xinjiang Baodi and Ningbo Ligong
The main advantage of trading using opposite Xinjiang Baodi and Ningbo Ligong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi position performs unexpectedly, Ningbo Ligong 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 Ningbo Ligong will offset losses from the drop in Ningbo Ligong's long position.Xinjiang Baodi vs. Zijin Mining Group | Xinjiang Baodi vs. Wanhua Chemical Group | Xinjiang Baodi vs. Baoshan Iron Steel | Xinjiang Baodi vs. Shandong Gold Mining |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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