Correlation Between Xiwang Foodstuffs and Huasi Agricultural
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By analyzing existing cross correlation between Xiwang Foodstuffs Co and Huasi Agricultural Development, you can compare the effects of market volatilities on Xiwang Foodstuffs and Huasi Agricultural 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 Huasi Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiwang Foodstuffs and Huasi Agricultural.
Diversification Opportunities for Xiwang Foodstuffs and Huasi Agricultural
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xiwang and Huasi is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Xiwang Foodstuffs Co and Huasi Agricultural Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huasi Agricultural 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 Huasi Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huasi Agricultural has no effect on the direction of Xiwang Foodstuffs i.e., Xiwang Foodstuffs and Huasi Agricultural go up and down completely randomly.
Pair Corralation between Xiwang Foodstuffs and Huasi Agricultural
Assuming the 90 days trading horizon Xiwang Foodstuffs Co is expected to under-perform the Huasi Agricultural. But the stock apears to be less risky and, when comparing its historical volatility, Xiwang Foodstuffs Co is 1.05 times less risky than Huasi Agricultural. The stock trades about -0.01 of its potential returns per unit of risk. The Huasi Agricultural Development is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 492.00 in Huasi Agricultural Development on October 11, 2024 and sell it today you would lose (93.00) from holding Huasi Agricultural Development or give up 18.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiwang Foodstuffs Co vs. Huasi Agricultural Development
Performance |
| Timeline |
| Xiwang Foodstuffs |
| Huasi Agricultural |
Xiwang Foodstuffs and Huasi Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiwang Foodstuffs and Huasi Agricultural
The main advantage of trading using opposite Xiwang Foodstuffs and Huasi Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiwang Foodstuffs position performs unexpectedly, Huasi Agricultural 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 Huasi Agricultural will offset losses from the drop in Huasi Agricultural's long position.| Xiwang Foodstuffs vs. Chengtun Mining Group | Xiwang Foodstuffs vs. Tibet Huayu Mining | Xiwang Foodstuffs vs. Zhengzhou Coal Mining | Xiwang Foodstuffs vs. Great Sun Foods Co |
| Huasi Agricultural vs. Integrated Electronic Systems | Huasi Agricultural vs. Xiwang Foodstuffs Co | Huasi Agricultural vs. Dongguan Tarry Electronics | Huasi Agricultural vs. Great Sun Foods 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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