Correlation Between Xiwang Foodstuffs and China State
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By analyzing existing cross correlation between Xiwang Foodstuffs Co and China State Construction, you can compare the effects of market volatilities on Xiwang Foodstuffs and China State 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 State. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiwang Foodstuffs and China State.
Diversification Opportunities for Xiwang Foodstuffs and China State
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Xiwang and China is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Xiwang Foodstuffs Co and China State Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China State Construction 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 State. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China State Construction has no effect on the direction of Xiwang Foodstuffs i.e., Xiwang Foodstuffs and China State go up and down completely randomly.
Pair Corralation between Xiwang Foodstuffs and China State
Assuming the 90 days trading horizon Xiwang Foodstuffs Co is expected to under-perform the China State. In addition to that, Xiwang Foodstuffs is 2.33 times more volatile than China State Construction. It trades about -0.24 of its total potential returns per unit of risk. China State Construction is currently generating about -0.41 per unit of volatility. If you would invest 602.00 in China State Construction on October 25, 2024 and sell it today you would lose (53.00) from holding China State Construction or give up 8.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiwang Foodstuffs Co vs. China State Construction
Performance |
| Timeline |
| Xiwang Foodstuffs |
| China State Construction |
Xiwang Foodstuffs and China State Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiwang Foodstuffs and China State
The main advantage of trading using opposite Xiwang Foodstuffs and China State positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiwang Foodstuffs position performs unexpectedly, China State 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 State will offset losses from the drop in China State's long position.| Xiwang Foodstuffs vs. Agricultural Bank of | Xiwang Foodstuffs vs. Postal Savings Bank | Xiwang Foodstuffs vs. Bank of Communications | Xiwang Foodstuffs vs. China Merchants Bank |
| China State vs. Ligao Foods CoLtd | China State vs. Xiwang Foodstuffs Co | China State vs. Penyao Environmental Protection | China State vs. GreenTech Environmental Co |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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