Correlation Between Xiwang Foodstuffs and Guangzhou Zhujiang
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By analyzing existing cross correlation between Xiwang Foodstuffs Co and Guangzhou Zhujiang Brewery, you can compare the effects of market volatilities on Xiwang Foodstuffs and Guangzhou Zhujiang 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 Guangzhou Zhujiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiwang Foodstuffs and Guangzhou Zhujiang.
Diversification Opportunities for Xiwang Foodstuffs and Guangzhou Zhujiang
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xiwang and Guangzhou is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Xiwang Foodstuffs Co and Guangzhou Zhujiang Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Zhujiang 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 Guangzhou Zhujiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Zhujiang has no effect on the direction of Xiwang Foodstuffs i.e., Xiwang Foodstuffs and Guangzhou Zhujiang go up and down completely randomly.
Pair Corralation between Xiwang Foodstuffs and Guangzhou Zhujiang
Assuming the 90 days trading horizon Xiwang Foodstuffs Co is expected to generate 2.01 times more return on investment than Guangzhou Zhujiang. However, Xiwang Foodstuffs is 2.01 times more volatile than Guangzhou Zhujiang Brewery. It trades about 0.06 of its potential returns per unit of risk. Guangzhou Zhujiang Brewery is currently generating about 0.04 per unit of risk. 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiwang Foodstuffs Co vs. Guangzhou Zhujiang Brewery
Performance |
| Timeline |
| Xiwang Foodstuffs |
| Guangzhou Zhujiang |
Xiwang Foodstuffs and Guangzhou Zhujiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiwang Foodstuffs and Guangzhou Zhujiang
The main advantage of trading using opposite Xiwang Foodstuffs and Guangzhou Zhujiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiwang Foodstuffs position performs unexpectedly, Guangzhou Zhujiang 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 Guangzhou Zhujiang will offset losses from the drop in Guangzhou Zhujiang's long position.| Xiwang Foodstuffs vs. Beijing Wantai Biological | Xiwang Foodstuffs vs. Aluminum Corp of | Xiwang Foodstuffs vs. COL Digital Publishing | Xiwang Foodstuffs vs. Shaanxi Meineng Clean |
| Guangzhou Zhujiang vs. Beijing Wantai Biological | Guangzhou Zhujiang vs. Aluminum Corp of | Guangzhou Zhujiang vs. COL Digital Publishing | Guangzhou Zhujiang 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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