Correlation Between Xiwang Foodstuffs and Jiahe Foods
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By analyzing existing cross correlation between Xiwang Foodstuffs Co and Jiahe Foods Industry, you can compare the effects of market volatilities on Xiwang Foodstuffs and Jiahe Foods 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 Jiahe Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiwang Foodstuffs and Jiahe Foods.
Diversification Opportunities for Xiwang Foodstuffs and Jiahe Foods
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiwang and Jiahe is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Xiwang Foodstuffs Co and Jiahe Foods Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiahe Foods Industry 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 Jiahe Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiahe Foods Industry has no effect on the direction of Xiwang Foodstuffs i.e., Xiwang Foodstuffs and Jiahe Foods go up and down completely randomly.
Pair Corralation between Xiwang Foodstuffs and Jiahe Foods
Assuming the 90 days trading horizon Xiwang Foodstuffs Co is expected to under-perform the Jiahe Foods. But the stock apears to be less risky and, when comparing its historical volatility, Xiwang Foodstuffs Co is 1.21 times less risky than Jiahe Foods. The stock trades about -0.19 of its potential returns per unit of risk. The Jiahe Foods Industry is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 1,318 in Jiahe Foods Industry on October 24, 2024 and sell it today you would lose (32.00) from holding Jiahe Foods Industry or give up 2.43% 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. Jiahe Foods Industry
Performance |
| Timeline |
| Xiwang Foodstuffs |
| Jiahe Foods Industry |
Xiwang Foodstuffs and Jiahe Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiwang Foodstuffs and Jiahe Foods
The main advantage of trading using opposite Xiwang Foodstuffs and Jiahe Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiwang Foodstuffs position performs unexpectedly, Jiahe Foods 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 Jiahe Foods will offset losses from the drop in Jiahe Foods' long position.| Xiwang Foodstuffs vs. Cambricon Technologies Corp | Xiwang Foodstuffs vs. SGSG Sciencetechnology Co | Xiwang Foodstuffs vs. Loongson Technology Corp | Xiwang Foodstuffs vs. Jiangsu Flowers King |
| Jiahe Foods vs. CICC Fund Management | Jiahe Foods vs. China Minmetals Rare | Jiahe Foods vs. Pengxin International Mining | Jiahe Foods vs. Qingdao Choho Industrial |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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