Correlation Between Jilin Chemical and Xiwang Foodstuffs
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By analyzing existing cross correlation between Jilin Chemical Fibre and Xiwang Foodstuffs Co, you can compare the effects of market volatilities on Jilin Chemical and Xiwang Foodstuffs 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 Jilin Chemical with a short position of Xiwang Foodstuffs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Chemical and Xiwang Foodstuffs.
Diversification Opportunities for Jilin Chemical and Xiwang Foodstuffs
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jilin and Xiwang is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Chemical Fibre and Xiwang Foodstuffs Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiwang Foodstuffs and Jilin Chemical 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 Jilin Chemical Fibre are associated (or correlated) with Xiwang Foodstuffs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiwang Foodstuffs has no effect on the direction of Jilin Chemical i.e., Jilin Chemical and Xiwang Foodstuffs go up and down completely randomly.
Pair Corralation between Jilin Chemical and Xiwang Foodstuffs
Assuming the 90 days trading horizon Jilin Chemical is expected to generate 7.62 times less return on investment than Xiwang Foodstuffs. But when comparing it to its historical volatility, Jilin Chemical Fibre is 1.3 times less risky than Xiwang Foodstuffs. It trades about 0.01 of its potential returns per unit of risk. Xiwang Foodstuffs Co is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 330.00 in Xiwang Foodstuffs Co on September 3, 2024 and sell it today you would earn a total of 85.00 from holding Xiwang Foodstuffs Co or generate 25.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jilin Chemical Fibre vs. Xiwang Foodstuffs Co
Performance |
| Timeline |
| Jilin Chemical Fibre |
| Xiwang Foodstuffs |
Jilin Chemical and Xiwang Foodstuffs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Chemical and Xiwang Foodstuffs
The main advantage of trading using opposite Jilin Chemical and Xiwang Foodstuffs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Chemical position performs unexpectedly, Xiwang Foodstuffs 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 Xiwang Foodstuffs will offset losses from the drop in Xiwang Foodstuffs' long position.| Jilin Chemical vs. Guangzhou KingTeller Technology | Jilin Chemical vs. StarPower Semiconductor | Jilin Chemical vs. Semiconductor Manufacturing Electronics | Jilin Chemical vs. Soyea Technology Co |
| Xiwang Foodstuffs vs. Beijing Wantai Biological | Xiwang Foodstuffs vs. Aluminum Corp of | Xiwang Foodstuffs vs. COL Digital Publishing | Xiwang Foodstuffs vs. Shaanxi Meineng Clean |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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