Correlation Between Xizi Clean and Zhejiang Huatong
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By analyzing existing cross correlation between Xizi Clean Energy and Zhejiang Huatong Meat, you can compare the effects of market volatilities on Xizi Clean and Zhejiang Huatong 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 Xizi Clean with a short position of Zhejiang Huatong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xizi Clean and Zhejiang Huatong.
Diversification Opportunities for Xizi Clean and Zhejiang Huatong
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xizi and Zhejiang is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Xizi Clean Energy and Zhejiang Huatong Meat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Huatong Meat and Xizi Clean 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 Xizi Clean Energy are associated (or correlated) with Zhejiang Huatong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Huatong Meat has no effect on the direction of Xizi Clean i.e., Xizi Clean and Zhejiang Huatong go up and down completely randomly.
Pair Corralation between Xizi Clean and Zhejiang Huatong
Assuming the 90 days trading horizon Xizi Clean Energy is expected to under-perform the Zhejiang Huatong. But the stock apears to be less risky and, when comparing its historical volatility, Xizi Clean Energy is 2.3 times less risky than Zhejiang Huatong. The stock trades about -0.07 of its potential returns per unit of risk. The Zhejiang Huatong Meat is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,241 in Zhejiang Huatong Meat on September 27, 2024 and sell it today you would earn a total of 89.00 from holding Zhejiang Huatong Meat or generate 7.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xizi Clean Energy vs. Zhejiang Huatong Meat
Performance |
| Timeline |
| Xizi Clean Energy |
| Zhejiang Huatong Meat |
Xizi Clean and Zhejiang Huatong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xizi Clean and Zhejiang Huatong
The main advantage of trading using opposite Xizi Clean and Zhejiang Huatong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xizi Clean position performs unexpectedly, Zhejiang Huatong 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 Zhejiang Huatong will offset losses from the drop in Zhejiang Huatong's long position.| Xizi Clean vs. Bank of China | Xizi Clean vs. Kweichow Moutai Co | Xizi Clean vs. PetroChina Co Ltd | Xizi Clean vs. Bank of Communications |
| Zhejiang Huatong vs. Sino Platinum Metals Co | Zhejiang Huatong vs. Shaanxi Meineng Clean | Zhejiang Huatong vs. Xizi Clean Energy | Zhejiang Huatong vs. Ningbo Fujia 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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