Correlation Between Xiwang Foodstuffs and Yes Optoelectronics
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By analyzing existing cross correlation between Xiwang Foodstuffs Co and Yes Optoelectronics Co, you can compare the effects of market volatilities on Xiwang Foodstuffs and Yes Optoelectronics 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 Yes Optoelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiwang Foodstuffs and Yes Optoelectronics.
Diversification Opportunities for Xiwang Foodstuffs and Yes Optoelectronics
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiwang and Yes is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Xiwang Foodstuffs Co and Yes Optoelectronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yes Optoelectronics 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 Yes Optoelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yes Optoelectronics has no effect on the direction of Xiwang Foodstuffs i.e., Xiwang Foodstuffs and Yes Optoelectronics go up and down completely randomly.
Pair Corralation between Xiwang Foodstuffs and Yes Optoelectronics
Assuming the 90 days trading horizon Xiwang Foodstuffs Co is expected to generate 0.94 times more return on investment than Yes Optoelectronics. However, Xiwang Foodstuffs Co is 1.07 times less risky than Yes Optoelectronics. It trades about 0.11 of its potential returns per unit of risk. Yes Optoelectronics Co is currently generating about 0.07 per unit of risk. If you would invest 238.00 in Xiwang Foodstuffs Co on September 26, 2024 and sell it today you would earn a total of 136.00 from holding Xiwang Foodstuffs Co or generate 57.14% 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. Yes Optoelectronics Co
Performance |
| Timeline |
| Xiwang Foodstuffs |
| Yes Optoelectronics |
Xiwang Foodstuffs and Yes Optoelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiwang Foodstuffs and Yes Optoelectronics
The main advantage of trading using opposite Xiwang Foodstuffs and Yes Optoelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiwang Foodstuffs position performs unexpectedly, Yes Optoelectronics 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 Yes Optoelectronics will offset losses from the drop in Yes Optoelectronics' long position.| Xiwang Foodstuffs vs. Northern United Publishing | Xiwang Foodstuffs vs. Guangdong Jingyi Metal | Xiwang Foodstuffs vs. Jiangxi Selon Industrial | Xiwang Foodstuffs vs. Qingdao Choho Industrial |
| Yes Optoelectronics vs. Industrial and Commercial | Yes Optoelectronics vs. China Construction Bank | Yes Optoelectronics vs. Agricultural Bank of | Yes Optoelectronics vs. Bank of China |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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