Correlation Between Metallurgical and Xinjiang Baodi
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By analyzing existing cross correlation between Metallurgical of and Xinjiang Baodi Mining, you can compare the effects of market volatilities on Metallurgical 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 Metallurgical with a short position of Xinjiang Baodi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metallurgical and Xinjiang Baodi.
Diversification Opportunities for Metallurgical and Xinjiang Baodi
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Metallurgical and Xinjiang is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Metallurgical of 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 Metallurgical 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 Metallurgical of 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 Metallurgical i.e., Metallurgical and Xinjiang Baodi go up and down completely randomly.
Pair Corralation between Metallurgical and Xinjiang Baodi
Assuming the 90 days trading horizon Metallurgical of is expected to under-perform the Xinjiang Baodi. In addition to that, Metallurgical is 1.02 times more volatile than Xinjiang Baodi Mining. It trades about -0.06 of its total potential returns per unit of risk. Xinjiang Baodi Mining is currently generating about -0.01 per unit of volatility. If you would invest 664.00 in Xinjiang Baodi Mining on October 8, 2024 and sell it today you would lose (29.00) from holding Xinjiang Baodi Mining or give up 4.37% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Metallurgical of vs. Xinjiang Baodi Mining
Performance |
Timeline |
Metallurgical |
Xinjiang Baodi Mining |
Metallurgical and Xinjiang Baodi Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Metallurgical and Xinjiang Baodi
The main advantage of trading using opposite Metallurgical and Xinjiang Baodi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metallurgical 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.Metallurgical vs. Agricultural Bank of | Metallurgical vs. Industrial and Commercial | Metallurgical vs. Bank of China | Metallurgical vs. PetroChina Co Ltd |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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