Correlation Between Xiwang Foodstuffs and Xiamen Jihong
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By analyzing existing cross correlation between Xiwang Foodstuffs Co and Xiamen Jihong Package, you can compare the effects of market volatilities on Xiwang Foodstuffs and Xiamen Jihong 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 Xiamen Jihong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiwang Foodstuffs and Xiamen Jihong.
Diversification Opportunities for Xiwang Foodstuffs and Xiamen Jihong
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xiwang and Xiamen is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Xiwang Foodstuffs Co and Xiamen Jihong Package in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Jihong Package 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 Xiamen Jihong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Jihong Package has no effect on the direction of Xiwang Foodstuffs i.e., Xiwang Foodstuffs and Xiamen Jihong go up and down completely randomly.
Pair Corralation between Xiwang Foodstuffs and Xiamen Jihong
Assuming the 90 days trading horizon Xiwang Foodstuffs Co is expected to generate 0.85 times more return on investment than Xiamen Jihong. However, Xiwang Foodstuffs Co is 1.18 times less risky than Xiamen Jihong. It trades about -0.16 of its potential returns per unit of risk. Xiamen Jihong Package is currently generating about -0.14 per unit of risk. If you would invest 384.00 in Xiwang Foodstuffs Co on October 23, 2024 and sell it today you would lose (32.00) from holding Xiwang Foodstuffs Co or give up 8.33% 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. Xiamen Jihong Package
Performance |
| Timeline |
| Xiwang Foodstuffs |
| Xiamen Jihong Package |
Xiwang Foodstuffs and Xiamen Jihong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiwang Foodstuffs and Xiamen Jihong
The main advantage of trading using opposite Xiwang Foodstuffs and Xiamen Jihong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiwang Foodstuffs position performs unexpectedly, Xiamen Jihong 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 Xiamen Jihong will offset losses from the drop in Xiamen Jihong's long position.| Xiwang Foodstuffs vs. Allwin Telecommunication Co | Xiwang Foodstuffs vs. Muyuan Foodstuff Co | Xiwang Foodstuffs vs. Beijing Bewinner Communications | Xiwang Foodstuffs vs. TianJin 712 Communication |
| Xiamen Jihong vs. Xinjiang Baodi Mining | Xiamen Jihong vs. Guangdong Silvere Sci | Xiamen Jihong vs. Glodon Software Co | Xiamen Jihong vs. Ningbo Ligong Online |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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