Correlation Between Westone Information and Xiandai Investment
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By analyzing existing cross correlation between Westone Information Industry and Xiandai Investment Co, you can compare the effects of market volatilities on Westone Information and Xiandai Investment 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 Westone Information with a short position of Xiandai Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westone Information and Xiandai Investment.
Diversification Opportunities for Westone Information and Xiandai Investment
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Westone and Xiandai is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Westone Information Industry and Xiandai Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiandai Investment and Westone Information 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 Westone Information Industry are associated (or correlated) with Xiandai Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiandai Investment has no effect on the direction of Westone Information i.e., Westone Information and Xiandai Investment go up and down completely randomly.
Pair Corralation between Westone Information and Xiandai Investment
Assuming the 90 days trading horizon Westone Information Industry is expected to under-perform the Xiandai Investment. But the stock apears to be less risky and, when comparing its historical volatility, Westone Information Industry is 1.04 times less risky than Xiandai Investment. The stock trades about -0.01 of its potential returns per unit of risk. The Xiandai Investment Co is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 414.00 in Xiandai Investment Co on September 5, 2024 and sell it today you would earn a total of 47.00 from holding Xiandai Investment Co or generate 11.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Westone Information Industry vs. Xiandai Investment Co
Performance |
| Timeline |
| Westone Information |
| Xiandai Investment |
Westone Information and Xiandai Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westone Information and Xiandai Investment
The main advantage of trading using opposite Westone Information and Xiandai Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westone Information position performs unexpectedly, Xiandai Investment 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 Xiandai Investment will offset losses from the drop in Xiandai Investment's long position.| Westone Information vs. Hangzhou Weiguang Electronic | Westone Information vs. Epoxy Base Electronic | Westone Information vs. Shanghai Broadband Technology | Westone Information vs. Leyard Optoelectronic |
| Xiandai Investment vs. Cultural Investment Holdings | Xiandai Investment vs. Westone Information Industry | Xiandai Investment vs. Nuode Investment Co | Xiandai Investment vs. Hangzhou Gisway Information |
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.
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