Correlation Between Xiwang Foodstuffs and Lootom Telcovideo
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xiwang Foodstuffs Co and Lootom Telcovideo Network, you can compare the effects of market volatilities on Xiwang Foodstuffs and Lootom Telcovideo 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 Lootom Telcovideo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiwang Foodstuffs and Lootom Telcovideo.
Diversification Opportunities for Xiwang Foodstuffs and Lootom Telcovideo
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xiwang and Lootom is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Xiwang Foodstuffs Co and Lootom Telcovideo Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lootom Telcovideo Network 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 Lootom Telcovideo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lootom Telcovideo Network has no effect on the direction of Xiwang Foodstuffs i.e., Xiwang Foodstuffs and Lootom Telcovideo go up and down completely randomly.
Pair Corralation between Xiwang Foodstuffs and Lootom Telcovideo
Assuming the 90 days trading horizon Xiwang Foodstuffs Co is expected to under-perform the Lootom Telcovideo. But the stock apears to be less risky and, when comparing its historical volatility, Xiwang Foodstuffs Co is 1.26 times less risky than Lootom Telcovideo. The stock trades about -0.16 of its potential returns per unit of risk. The Lootom Telcovideo Network is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 809.00 in Lootom Telcovideo Network on October 23, 2024 and sell it today you would earn a total of 46.00 from holding Lootom Telcovideo Network or generate 5.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiwang Foodstuffs Co vs. Lootom Telcovideo Network
Performance |
| Timeline |
| Xiwang Foodstuffs |
| Lootom Telcovideo Network |
Xiwang Foodstuffs and Lootom Telcovideo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiwang Foodstuffs and Lootom Telcovideo
The main advantage of trading using opposite Xiwang Foodstuffs and Lootom Telcovideo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiwang Foodstuffs position performs unexpectedly, Lootom Telcovideo 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 Lootom Telcovideo will offset losses from the drop in Lootom Telcovideo'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 |
| Lootom Telcovideo vs. Tongling Nonferrous Metals | Lootom Telcovideo vs. Guangdong Silvere Sci | Lootom Telcovideo vs. ZYF Lopsking Aluminum | Lootom Telcovideo vs. Jiangxi Naipu Mining |
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.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |