Correlation Between Xilong Chemical and Digiwin Software
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By analyzing existing cross correlation between Xilong Chemical Co and Digiwin Software Co, you can compare the effects of market volatilities on Xilong Chemical and Digiwin Software 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 Xilong Chemical with a short position of Digiwin Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xilong Chemical and Digiwin Software.
Diversification Opportunities for Xilong Chemical and Digiwin Software
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xilong and Digiwin is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Xilong Chemical Co and Digiwin Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digiwin Software and Xilong Chemical 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 Xilong Chemical Co are associated (or correlated) with Digiwin Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digiwin Software has no effect on the direction of Xilong Chemical i.e., Xilong Chemical and Digiwin Software go up and down completely randomly.
Pair Corralation between Xilong Chemical and Digiwin Software
Assuming the 90 days trading horizon Xilong Chemical Co is expected to generate 0.96 times more return on investment than Digiwin Software. However, Xilong Chemical Co is 1.04 times less risky than Digiwin Software. It trades about -0.21 of its potential returns per unit of risk. Digiwin Software Co is currently generating about -0.35 per unit of risk. If you would invest 915.00 in Xilong Chemical Co on October 14, 2024 and sell it today you would lose (126.00) from holding Xilong Chemical Co or give up 13.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xilong Chemical Co vs. Digiwin Software Co
Performance |
| Timeline |
| Xilong Chemical |
| Digiwin Software |
Xilong Chemical and Digiwin Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xilong Chemical and Digiwin Software
The main advantage of trading using opposite Xilong Chemical and Digiwin Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xilong Chemical position performs unexpectedly, Digiwin Software 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 Digiwin Software will offset losses from the drop in Digiwin Software's long position.| Xilong Chemical vs. Changjiang Publishing Media | Xilong Chemical vs. Time Publishing and | Xilong Chemical vs. Shenzhen Noposion Agrochemicals | Xilong Chemical vs. Jiangsu Phoenix Publishing |
| Digiwin Software vs. Shenyang Chemical Industry | Digiwin Software vs. Xilong Chemical Co | Digiwin Software vs. Pengxin International Mining | Digiwin Software vs. Guangzhou Haozhi 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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