Correlation Between Western Metal and Xizi Clean
Specify exactly 2 symbols:
By analyzing existing cross correlation between Western Metal Materials and Xizi Clean Energy, you can compare the effects of market volatilities on Western Metal and Xizi Clean 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 Western Metal with a short position of Xizi Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Metal and Xizi Clean.
Diversification Opportunities for Western Metal and Xizi Clean
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Western and Xizi is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Western Metal Materials and Xizi Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xizi Clean Energy and Western Metal 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 Western Metal Materials are associated (or correlated) with Xizi Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xizi Clean Energy has no effect on the direction of Western Metal i.e., Western Metal and Xizi Clean go up and down completely randomly.
Pair Corralation between Western Metal and Xizi Clean
Assuming the 90 days trading horizon Western Metal Materials is expected to generate 0.98 times more return on investment than Xizi Clean. However, Western Metal Materials is 1.02 times less risky than Xizi Clean. It trades about 0.02 of its potential returns per unit of risk. Xizi Clean Energy is currently generating about -0.01 per unit of risk. If you would invest 1,676 in Western Metal Materials on October 29, 2024 and sell it today you would earn a total of 88.00 from holding Western Metal Materials or generate 5.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Metal Materials vs. Xizi Clean Energy
Performance |
| Timeline |
| Western Metal Materials |
| Xizi Clean Energy |
Western Metal and Xizi Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Metal and Xizi Clean
The main advantage of trading using opposite Western Metal and Xizi Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Metal position performs unexpectedly, Xizi Clean 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 Xizi Clean will offset losses from the drop in Xizi Clean's long position.| Western Metal vs. Zijin Mining Group | Western Metal vs. Wanhua Chemical Group | Western Metal vs. Baoshan Iron Steel | Western Metal vs. Shandong Gold Mining |
| Xizi Clean vs. Hengli Industrial Development | Xizi Clean vs. Sichuan Yahua Industrial | Xizi Clean vs. Rising Nonferrous Metals | Xizi Clean vs. Gem Year Industrial 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |