Correlation Between Baoshan Iron and Shanghai Putailai
Specify exactly 2 symbols:
By analyzing existing cross correlation between Baoshan Iron Steel and Shanghai Putailai New, you can compare the effects of market volatilities on Baoshan Iron and Shanghai Putailai 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 Baoshan Iron with a short position of Shanghai Putailai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baoshan Iron and Shanghai Putailai.
Diversification Opportunities for Baoshan Iron and Shanghai Putailai
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Baoshan and Shanghai is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Baoshan Iron Steel and Shanghai Putailai New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Putailai New and Baoshan Iron 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 Baoshan Iron Steel are associated (or correlated) with Shanghai Putailai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Putailai New has no effect on the direction of Baoshan Iron i.e., Baoshan Iron and Shanghai Putailai go up and down completely randomly.
Pair Corralation between Baoshan Iron and Shanghai Putailai
Assuming the 90 days trading horizon Baoshan Iron Steel is expected to generate 0.55 times more return on investment than Shanghai Putailai. However, Baoshan Iron Steel is 1.83 times less risky than Shanghai Putailai. It trades about 0.13 of its potential returns per unit of risk. Shanghai Putailai New is currently generating about -0.33 per unit of risk. If you would invest 656.00 in Baoshan Iron Steel on September 23, 2024 and sell it today you would earn a total of 22.00 from holding Baoshan Iron Steel or generate 3.35% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Baoshan Iron Steel vs. Shanghai Putailai New
Performance |
Timeline |
Baoshan Iron Steel |
Shanghai Putailai New |
Baoshan Iron and Shanghai Putailai Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Baoshan Iron and Shanghai Putailai
The main advantage of trading using opposite Baoshan Iron and Shanghai Putailai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baoshan Iron position performs unexpectedly, Shanghai Putailai 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 Shanghai Putailai will offset losses from the drop in Shanghai Putailai's long position.Baoshan Iron vs. Wanhua Chemical Group | Baoshan Iron vs. Shandong Gold Mining | Baoshan Iron vs. Rongsheng Petrochemical Co | Baoshan Iron vs. Inner Mongolia BaoTou |
Shanghai Putailai vs. Zijin Mining Group | Shanghai Putailai vs. Baoshan Iron Steel | Shanghai Putailai vs. Shandong Gold Mining | Shanghai Putailai vs. Rongsheng Petrochemical Co |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Content Syndication Quickly integrate customizable finance content to your own investment portal |