Correlation Between Xiwang Foodstuffs and Guangzhou Haige
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By analyzing existing cross correlation between Xiwang Foodstuffs Co and Guangzhou Haige Communications, you can compare the effects of market volatilities on Xiwang Foodstuffs and Guangzhou Haige 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 Haige. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiwang Foodstuffs and Guangzhou Haige.
Diversification Opportunities for Xiwang Foodstuffs and Guangzhou Haige
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiwang and Guangzhou is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Xiwang Foodstuffs Co and Guangzhou Haige Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Haige Comm 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 Haige. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Haige Comm has no effect on the direction of Xiwang Foodstuffs i.e., Xiwang Foodstuffs and Guangzhou Haige go up and down completely randomly.
Pair Corralation between Xiwang Foodstuffs and Guangzhou Haige
Assuming the 90 days trading horizon Xiwang Foodstuffs is expected to generate 1.37 times less return on investment than Guangzhou Haige. But when comparing it to its historical volatility, Xiwang Foodstuffs Co is 1.05 times less risky than Guangzhou Haige. It trades about 0.15 of its potential returns per unit of risk. Guangzhou Haige Communications is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,062 in Guangzhou Haige Communications on November 29, 2024 and sell it today you would earn a total of 88.00 from holding Guangzhou Haige Communications or generate 8.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiwang Foodstuffs Co vs. Guangzhou Haige Communications
Performance |
| Timeline |
| Xiwang Foodstuffs |
| Guangzhou Haige Comm |
Xiwang Foodstuffs and Guangzhou Haige Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiwang Foodstuffs and Guangzhou Haige
The main advantage of trading using opposite Xiwang Foodstuffs and Guangzhou Haige positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiwang Foodstuffs position performs unexpectedly, Guangzhou Haige 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 Haige will offset losses from the drop in Guangzhou Haige's long position.| Xiwang Foodstuffs vs. Shanghai Shibei Hi Tech | Xiwang Foodstuffs vs. Postal Savings Bank | Xiwang Foodstuffs vs. Allwin Telecommunication Co | Xiwang Foodstuffs vs. Xiamen Insight Investment |
| Guangzhou Haige vs. Anhui Jianghuai Automobile | Guangzhou Haige vs. Wintao Communications Co | Guangzhou Haige vs. China Mobile Limited | Guangzhou Haige vs. Hubei Geoway Investment |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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