Correlation Between Xiwang Foodstuffs and Changchun BCHT
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By analyzing existing cross correlation between Xiwang Foodstuffs Co and Changchun BCHT Biotechnology, you can compare the effects of market volatilities on Xiwang Foodstuffs and Changchun BCHT 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 Changchun BCHT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiwang Foodstuffs and Changchun BCHT.
Diversification Opportunities for Xiwang Foodstuffs and Changchun BCHT
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Xiwang and Changchun is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Xiwang Foodstuffs Co and Changchun BCHT Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun BCHT Biote 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 Changchun BCHT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun BCHT Biote has no effect on the direction of Xiwang Foodstuffs i.e., Xiwang Foodstuffs and Changchun BCHT go up and down completely randomly.
Pair Corralation between Xiwang Foodstuffs and Changchun BCHT
Assuming the 90 days trading horizon Xiwang Foodstuffs Co is expected to generate 1.33 times more return on investment than Changchun BCHT. However, Xiwang Foodstuffs is 1.33 times more volatile than Changchun BCHT Biotechnology. It trades about -0.16 of its potential returns per unit of risk. Changchun BCHT Biotechnology is currently generating about -0.28 per unit of risk. If you would invest 384.00 in Xiwang Foodstuffs Co on October 23, 2024 and sell it today you would lose (32.00) from holding Xiwang Foodstuffs Co or give up 8.33% 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. Changchun BCHT Biotechnology
Performance |
| Timeline |
| Xiwang Foodstuffs |
| Changchun BCHT Biote |
Xiwang Foodstuffs and Changchun BCHT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiwang Foodstuffs and Changchun BCHT
The main advantage of trading using opposite Xiwang Foodstuffs and Changchun BCHT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiwang Foodstuffs position performs unexpectedly, Changchun BCHT 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 Changchun BCHT will offset losses from the drop in Changchun BCHT's long position.| Xiwang Foodstuffs vs. Allwin Telecommunication Co | Xiwang Foodstuffs vs. Muyuan Foodstuff Co | Xiwang Foodstuffs vs. Beijing Bewinner Communications | Xiwang Foodstuffs vs. TianJin 712 Communication |
| Changchun BCHT vs. Hubei Xingfa Chemicals | Changchun BCHT vs. Ningxia Younglight Chemicals | Changchun BCHT vs. Porton Fine Chemicals | Changchun BCHT vs. Angang Steel 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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