Correlation Between Xiwang Foodstuffs and Dawning Information
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xiwang Foodstuffs Co and Dawning Information Industry, you can compare the effects of market volatilities on Xiwang Foodstuffs and Dawning Information 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 Dawning Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiwang Foodstuffs and Dawning Information.
Diversification Opportunities for Xiwang Foodstuffs and Dawning Information
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiwang and Dawning is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Xiwang Foodstuffs Co and Dawning Information Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dawning Information 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 Dawning Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dawning Information has no effect on the direction of Xiwang Foodstuffs i.e., Xiwang Foodstuffs and Dawning Information go up and down completely randomly.
Pair Corralation between Xiwang Foodstuffs and Dawning Information
Assuming the 90 days trading horizon Xiwang Foodstuffs Co is expected to under-perform the Dawning Information. In addition to that, Xiwang Foodstuffs is 1.3 times more volatile than Dawning Information Industry. It trades about -0.23 of its total potential returns per unit of risk. Dawning Information Industry is currently generating about -0.18 per unit of volatility. If you would invest 8,380 in Dawning Information Industry on November 1, 2024 and sell it today you would lose (1,681) from holding Dawning Information Industry or give up 20.06% 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. Dawning Information Industry
Performance |
| Timeline |
| Xiwang Foodstuffs |
| Dawning Information |
Xiwang Foodstuffs and Dawning Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiwang Foodstuffs and Dawning Information
The main advantage of trading using opposite Xiwang Foodstuffs and Dawning Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiwang Foodstuffs position performs unexpectedly, Dawning Information 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 Dawning Information will offset losses from the drop in Dawning Information's long position.| Xiwang Foodstuffs vs. HeBei Jinniu Chemical | Xiwang Foodstuffs vs. Longjian Road Bridge | Xiwang Foodstuffs vs. Zhengping RoadBridge Constr | Xiwang Foodstuffs vs. Chengdu Xinzhu RoadBridge |
| Dawning Information vs. BrightGene Bio Medical | Dawning Information vs. Double Medical Technology | Dawning Information vs. Tangel Publishing | Dawning Information vs. Jiangsu Phoenix Publishing |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |