Correlation Between Kuang Chi and Xiwang Foodstuffs
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By analyzing existing cross correlation between Kuang Chi Technologies and Xiwang Foodstuffs Co, you can compare the effects of market volatilities on Kuang Chi 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 Kuang Chi with a short position of Xiwang Foodstuffs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuang Chi and Xiwang Foodstuffs.
Diversification Opportunities for Kuang Chi and Xiwang Foodstuffs
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kuang and Xiwang is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Kuang Chi Technologies and Xiwang Foodstuffs Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiwang Foodstuffs and Kuang Chi 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 Kuang Chi Technologies 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 Kuang Chi i.e., Kuang Chi and Xiwang Foodstuffs go up and down completely randomly.
Pair Corralation between Kuang Chi and Xiwang Foodstuffs
Assuming the 90 days trading horizon Kuang Chi Technologies is expected to under-perform the Xiwang Foodstuffs. But the stock apears to be less risky and, when comparing its historical volatility, Kuang Chi Technologies is 1.07 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 0.28 of returns per unit of risk over similar time horizon. If you would invest 403.00 in Xiwang Foodstuffs Co on September 14, 2024 and sell it today you would earn a total of 99.00 from holding Xiwang Foodstuffs Co or generate 24.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuang Chi Technologies vs. Xiwang Foodstuffs Co
Performance |
| Timeline |
| Kuang Chi Technologies |
| Xiwang Foodstuffs |
Kuang Chi and Xiwang Foodstuffs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuang Chi and Xiwang Foodstuffs
The main advantage of trading using opposite Kuang Chi and Xiwang Foodstuffs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuang Chi 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.| Kuang Chi vs. BeiGene | Kuang Chi vs. Kweichow Moutai Co | Kuang Chi vs. Beijing Roborock Technology | Kuang Chi vs. G bits Network Technology |
| Xiwang Foodstuffs vs. Heilongjiang Transport Development | Xiwang Foodstuffs vs. Huaibei Mining Holdings | Xiwang Foodstuffs vs. Guangdong Silvere Sci | Xiwang Foodstuffs vs. Sichuan Fulin Transportation |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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