Correlation Between Xiwang Foodstuffs and Nanjing Putian
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By analyzing existing cross correlation between Xiwang Foodstuffs Co and Nanjing Putian Telecommunications, you can compare the effects of market volatilities on Xiwang Foodstuffs and Nanjing Putian 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 Nanjing Putian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiwang Foodstuffs and Nanjing Putian.
Diversification Opportunities for Xiwang Foodstuffs and Nanjing Putian
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xiwang and Nanjing is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Xiwang Foodstuffs Co and Nanjing Putian Telecommunicati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing Putian Telec 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 Nanjing Putian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing Putian Telec has no effect on the direction of Xiwang Foodstuffs i.e., Xiwang Foodstuffs and Nanjing Putian go up and down completely randomly.
Pair Corralation between Xiwang Foodstuffs and Nanjing Putian
Assuming the 90 days trading horizon Xiwang Foodstuffs Co is expected to under-perform the Nanjing Putian. But the stock apears to be less risky and, when comparing its historical volatility, Xiwang Foodstuffs Co is 1.2 times less risky than Nanjing Putian. The stock trades about 0.0 of its potential returns per unit of risk. The Nanjing Putian Telecommunications is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 344.00 in Nanjing Putian Telecommunications on September 3, 2024 and sell it today you would earn a total of 116.00 from holding Nanjing Putian Telecommunications or generate 33.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiwang Foodstuffs Co vs. Nanjing Putian Telecommunicati
Performance |
| Timeline |
| Xiwang Foodstuffs |
| Nanjing Putian Telec |
Xiwang Foodstuffs and Nanjing Putian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiwang Foodstuffs and Nanjing Putian
The main advantage of trading using opposite Xiwang Foodstuffs and Nanjing Putian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiwang Foodstuffs position performs unexpectedly, Nanjing Putian 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 Nanjing Putian will offset losses from the drop in Nanjing Putian'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 |
| Nanjing Putian vs. Agricultural Bank of | Nanjing Putian vs. China Construction Bank | Nanjing Putian vs. Postal Savings Bank | Nanjing Putian vs. Bank of Communications |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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