Correlation Between Xinjiang Baodi and Zhengping RoadBridge
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By analyzing existing cross correlation between Xinjiang Baodi Mining and Zhengping RoadBridge Constr, you can compare the effects of market volatilities on Xinjiang Baodi and Zhengping RoadBridge 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 Zhengping RoadBridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and Zhengping RoadBridge.
Diversification Opportunities for Xinjiang Baodi and Zhengping RoadBridge
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xinjiang and Zhengping is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining and Zhengping RoadBridge Constr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhengping RoadBridge 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 Zhengping RoadBridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhengping RoadBridge has no effect on the direction of Xinjiang Baodi i.e., Xinjiang Baodi and Zhengping RoadBridge go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and Zhengping RoadBridge
Assuming the 90 days trading horizon Xinjiang Baodi Mining is expected to under-perform the Zhengping RoadBridge. But the stock apears to be less risky and, when comparing its historical volatility, Xinjiang Baodi Mining is 1.78 times less risky than Zhengping RoadBridge. The stock trades about -0.01 of its potential returns per unit of risk. The Zhengping RoadBridge Constr is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 300.00 in Zhengping RoadBridge Constr on October 8, 2024 and sell it today you would earn a total of 30.00 from holding Zhengping RoadBridge Constr or generate 10.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Xinjiang Baodi Mining vs. Zhengping RoadBridge Constr
Performance |
Timeline |
Xinjiang Baodi Mining |
Zhengping RoadBridge |
Xinjiang Baodi and Zhengping RoadBridge Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xinjiang Baodi and Zhengping RoadBridge
The main advantage of trading using opposite Xinjiang Baodi and Zhengping RoadBridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi position performs unexpectedly, Zhengping RoadBridge 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 Zhengping RoadBridge will offset losses from the drop in Zhengping RoadBridge'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 |
Zhengping RoadBridge vs. Dazhong Transportation Group | Zhengping RoadBridge vs. XiAn Dagang Road | Zhengping RoadBridge vs. Shanghai Yanpu Metal | Zhengping RoadBridge vs. China Aluminum International |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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