Correlation Between Xiwang Foodstuffs and Ningbo Homelink
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By analyzing existing cross correlation between Xiwang Foodstuffs Co and Ningbo Homelink Eco iTech, you can compare the effects of market volatilities on Xiwang Foodstuffs and Ningbo Homelink 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 Ningbo Homelink. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiwang Foodstuffs and Ningbo Homelink.
Diversification Opportunities for Xiwang Foodstuffs and Ningbo Homelink
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xiwang and Ningbo is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Xiwang Foodstuffs Co and Ningbo Homelink Eco iTech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Homelink Eco 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 Ningbo Homelink. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Homelink Eco has no effect on the direction of Xiwang Foodstuffs i.e., Xiwang Foodstuffs and Ningbo Homelink go up and down completely randomly.
Pair Corralation between Xiwang Foodstuffs and Ningbo Homelink
Assuming the 90 days trading horizon Xiwang Foodstuffs Co is expected to generate 1.08 times more return on investment than Ningbo Homelink. However, Xiwang Foodstuffs is 1.08 times more volatile than Ningbo Homelink Eco iTech. It trades about 0.02 of its potential returns per unit of risk. Ningbo Homelink Eco iTech is currently generating about 0.0 per unit of risk. If you would invest 470.00 in Xiwang Foodstuffs Co on September 14, 2024 and sell it today you would earn a total of 32.00 from holding Xiwang Foodstuffs Co or generate 6.81% 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. Ningbo Homelink Eco iTech
Performance |
| Timeline |
| Xiwang Foodstuffs |
| Ningbo Homelink Eco |
Xiwang Foodstuffs and Ningbo Homelink Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiwang Foodstuffs and Ningbo Homelink
The main advantage of trading using opposite Xiwang Foodstuffs and Ningbo Homelink positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiwang Foodstuffs position performs unexpectedly, Ningbo Homelink 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 Ningbo Homelink will offset losses from the drop in Ningbo Homelink's long position.| Xiwang Foodstuffs vs. Heilongjiang Transport Development | Xiwang Foodstuffs vs. Huaibei Mining Holdings | Xiwang Foodstuffs vs. Guangdong Silvere Sci | Xiwang Foodstuffs vs. Sichuan Fulin Transportation |
| Ningbo Homelink vs. Jahen Household Products | Ningbo Homelink vs. Sichuan Yahua Industrial | Ningbo Homelink vs. Gansu Yasheng Industrial | Ningbo Homelink vs. China Nonferrous Metal |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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