Correlation Between Xizi Clean and Weihai Guangwei
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By analyzing existing cross correlation between Xizi Clean Energy and Weihai Guangwei Composites, you can compare the effects of market volatilities on Xizi Clean and Weihai Guangwei 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 Weihai Guangwei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xizi Clean and Weihai Guangwei.
Diversification Opportunities for Xizi Clean and Weihai Guangwei
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xizi and Weihai is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Xizi Clean Energy and Weihai Guangwei Composites in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weihai Guangwei Comp 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 Weihai Guangwei. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weihai Guangwei Comp has no effect on the direction of Xizi Clean i.e., Xizi Clean and Weihai Guangwei go up and down completely randomly.
Pair Corralation between Xizi Clean and Weihai Guangwei
Assuming the 90 days trading horizon Xizi Clean Energy is expected to generate 1.04 times more return on investment than Weihai Guangwei. However, Xizi Clean is 1.04 times more volatile than Weihai Guangwei Composites. It trades about -0.01 of its potential returns per unit of risk. Weihai Guangwei Composites is currently generating about -0.01 per unit of risk. If you would invest 1,506 in Xizi Clean Energy on September 3, 2024 and sell it today you would lose (305.00) from holding Xizi Clean Energy or give up 20.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xizi Clean Energy vs. Weihai Guangwei Composites
Performance |
| Timeline |
| Xizi Clean Energy |
| Weihai Guangwei Comp |
Xizi Clean and Weihai Guangwei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xizi Clean and Weihai Guangwei
The main advantage of trading using opposite Xizi Clean and Weihai Guangwei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xizi Clean position performs unexpectedly, Weihai Guangwei 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 Weihai Guangwei will offset losses from the drop in Weihai Guangwei's long position.| Xizi Clean vs. Cultural Investment Holdings | Xizi Clean vs. Gome Telecom Equipment | Xizi Clean vs. Bus Online Co | Xizi Clean vs. Holitech Technology Co |
| Weihai Guangwei vs. Shandong Homey Aquatic | Weihai Guangwei vs. Xinhua Winshare Publishing | Weihai Guangwei vs. Luolai Home Textile | Weihai Guangwei vs. Changjiang Publishing Media |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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