Correlation Between Xiwang Foodstuffs and China United
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By analyzing existing cross correlation between Xiwang Foodstuffs Co and China United Network, you can compare the effects of market volatilities on Xiwang Foodstuffs and China United 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 China United. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiwang Foodstuffs and China United.
Diversification Opportunities for Xiwang Foodstuffs and China United
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiwang and China is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Xiwang Foodstuffs Co and China United Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China United 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 China United. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China United Network has no effect on the direction of Xiwang Foodstuffs i.e., Xiwang Foodstuffs and China United go up and down completely randomly.
Pair Corralation between Xiwang Foodstuffs and China United
Assuming the 90 days trading horizon Xiwang Foodstuffs Co is expected to generate 1.71 times more return on investment than China United. However, Xiwang Foodstuffs is 1.71 times more volatile than China United Network. It trades about 0.01 of its potential returns per unit of risk. China United Network is currently generating about 0.01 per unit of risk. If you would invest 456.00 in Xiwang Foodstuffs Co on September 12, 2024 and sell it today you would lose (4.00) from holding Xiwang Foodstuffs Co or give up 0.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiwang Foodstuffs Co vs. China United Network
Performance |
| Timeline |
| Xiwang Foodstuffs |
| China United Network |
Xiwang Foodstuffs and China United Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiwang Foodstuffs and China United
The main advantage of trading using opposite Xiwang Foodstuffs and China United positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiwang Foodstuffs position performs unexpectedly, China United 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 China United will offset losses from the drop in China United's long position.| Xiwang Foodstuffs vs. State Grid InformationCommunication | Xiwang Foodstuffs vs. StarPower Semiconductor | Xiwang Foodstuffs vs. Eastern Air Logistics | Xiwang Foodstuffs vs. Shenzhen Kexin Communication |
| China United vs. HeBei Jinniu Chemical | China United vs. Ningbo Bohui Chemical | China United vs. Shenzhen Bioeasy Biotechnology | China United vs. Jilin Chemical Fibre |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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