Correlation Between Xiwang Foodstuffs and Chengdu Xingrong
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By analyzing existing cross correlation between Xiwang Foodstuffs Co and Chengdu Xingrong Investment, you can compare the effects of market volatilities on Xiwang Foodstuffs and Chengdu Xingrong 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 Xiwang Foodstuffs with a short position of Chengdu Xingrong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiwang Foodstuffs and Chengdu Xingrong.
Diversification Opportunities for Xiwang Foodstuffs and Chengdu Xingrong
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xiwang and Chengdu is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Xiwang Foodstuffs Co and Chengdu Xingrong Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Xingrong Inv and Xiwang Foodstuffs 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 Xiwang Foodstuffs Co are associated (or correlated) with Chengdu Xingrong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Xingrong Inv has no effect on the direction of Xiwang Foodstuffs i.e., Xiwang Foodstuffs and Chengdu Xingrong go up and down completely randomly.
Pair Corralation between Xiwang Foodstuffs and Chengdu Xingrong
Assuming the 90 days trading horizon Xiwang Foodstuffs is expected to generate 58.29 times less return on investment than Chengdu Xingrong. In addition to that, Xiwang Foodstuffs is 1.65 times more volatile than Chengdu Xingrong Investment. It trades about 0.0 of its total potential returns per unit of risk. Chengdu Xingrong Investment is currently generating about 0.06 per unit of volatility. If you would invest 476.00 in Chengdu Xingrong Investment on September 5, 2024 and sell it today you would earn a total of 238.00 from holding Chengdu Xingrong Investment or generate 50.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiwang Foodstuffs Co vs. Chengdu Xingrong Investment
Performance |
| Timeline |
| Xiwang Foodstuffs |
| Chengdu Xingrong Inv |
Xiwang Foodstuffs and Chengdu Xingrong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiwang Foodstuffs and Chengdu Xingrong
The main advantage of trading using opposite Xiwang Foodstuffs and Chengdu Xingrong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiwang Foodstuffs position performs unexpectedly, Chengdu Xingrong 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 Chengdu Xingrong will offset losses from the drop in Chengdu Xingrong's long position.| Xiwang Foodstuffs vs. Chengdu Xingrong Investment | Xiwang Foodstuffs vs. Hunan Investment Group | Xiwang Foodstuffs vs. Beijing Mainstreets Investment | Xiwang Foodstuffs vs. Metro Investment Development |
| Chengdu Xingrong vs. Focus Media Information | Chengdu Xingrong vs. Yangmei Chemical Co | Chengdu Xingrong vs. Thinkingdom Media Group | Chengdu Xingrong vs. Hengdian Entertainment 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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