Correlation Between Xiwang Foodstuffs and Shanghai Laimu
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xiwang Foodstuffs Co and Shanghai Laimu Electronics, you can compare the effects of market volatilities on Xiwang Foodstuffs and Shanghai Laimu 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 Shanghai Laimu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiwang Foodstuffs and Shanghai Laimu.
Diversification Opportunities for Xiwang Foodstuffs and Shanghai Laimu
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xiwang and Shanghai is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Xiwang Foodstuffs Co and Shanghai Laimu Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Laimu Elect 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 Shanghai Laimu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Laimu Elect has no effect on the direction of Xiwang Foodstuffs i.e., Xiwang Foodstuffs and Shanghai Laimu go up and down completely randomly.
Pair Corralation between Xiwang Foodstuffs and Shanghai Laimu
Assuming the 90 days trading horizon Xiwang Foodstuffs Co is expected to generate 1.85 times more return on investment than Shanghai Laimu. However, Xiwang Foodstuffs is 1.85 times more volatile than Shanghai Laimu Electronics. It trades about 0.27 of its potential returns per unit of risk. Shanghai Laimu Electronics is currently generating about 0.17 per unit of risk. If you would invest 276.00 in Xiwang Foodstuffs Co on September 13, 2024 and sell it today you would earn a total of 194.00 from holding Xiwang Foodstuffs Co or generate 70.29% 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. Shanghai Laimu Electronics
Performance |
| Timeline |
| Xiwang Foodstuffs |
| Shanghai Laimu Elect |
Xiwang Foodstuffs and Shanghai Laimu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiwang Foodstuffs and Shanghai Laimu
The main advantage of trading using opposite Xiwang Foodstuffs and Shanghai Laimu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiwang Foodstuffs position performs unexpectedly, Shanghai Laimu 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 Shanghai Laimu will offset losses from the drop in Shanghai Laimu's long position.| Xiwang Foodstuffs vs. Nanjing Putian Telecommunications | Xiwang Foodstuffs vs. Tianjin Realty Development | Xiwang Foodstuffs vs. Kangyue Technology Co | Xiwang Foodstuffs vs. Shenzhen Hifuture Electric |
| Shanghai Laimu vs. Jiujiang Shanshui Technology | Shanghai Laimu vs. Kuang Chi Technologies | Shanghai Laimu vs. Xiwang Foodstuffs Co | Shanghai Laimu vs. Guilin Seamild Foods |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |