Correlation Between Guangdong Jingyi and Xiwang Foodstuffs
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By analyzing existing cross correlation between Guangdong Jingyi Metal and Xiwang Foodstuffs Co, you can compare the effects of market volatilities on Guangdong Jingyi and Xiwang Foodstuffs 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 Guangdong Jingyi with a short position of Xiwang Foodstuffs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Xiwang Foodstuffs.
Diversification Opportunities for Guangdong Jingyi and Xiwang Foodstuffs
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Xiwang is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and Xiwang Foodstuffs Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiwang Foodstuffs and Guangdong Jingyi 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 Guangdong Jingyi Metal are associated (or correlated) with Xiwang Foodstuffs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiwang Foodstuffs has no effect on the direction of Guangdong Jingyi i.e., Guangdong Jingyi and Xiwang Foodstuffs go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Xiwang Foodstuffs
Assuming the 90 days trading horizon Guangdong Jingyi Metal is expected to under-perform the Xiwang Foodstuffs. But the stock apears to be less risky and, when comparing its historical volatility, Guangdong Jingyi Metal is 1.8 times less risky than Xiwang Foodstuffs. The stock trades about -0.13 of its potential returns per unit of risk. The Xiwang Foodstuffs Co is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 386.00 in Xiwang Foodstuffs Co on September 27, 2024 and sell it today you would lose (12.00) from holding Xiwang Foodstuffs Co or give up 3.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jingyi Metal vs. Xiwang Foodstuffs Co
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| Xiwang Foodstuffs |
Guangdong Jingyi and Xiwang Foodstuffs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and Xiwang Foodstuffs
The main advantage of trading using opposite Guangdong Jingyi and Xiwang Foodstuffs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi position performs unexpectedly, Xiwang Foodstuffs 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 Xiwang Foodstuffs will offset losses from the drop in Xiwang Foodstuffs' long position.| Guangdong Jingyi vs. Zijin Mining Group | Guangdong Jingyi vs. Wanhua Chemical Group | Guangdong Jingyi vs. Baoshan Iron Steel | Guangdong Jingyi vs. Shandong Gold Mining |
| Xiwang Foodstuffs vs. Northern United Publishing | Xiwang Foodstuffs vs. Guangdong Jingyi Metal | Xiwang Foodstuffs vs. Jiangxi Selon Industrial | Xiwang Foodstuffs 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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