Correlation Between Era and Xingguang Agricultural
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By analyzing existing cross correlation between Era Co and Xingguang Agricultural Mach, you can compare the effects of market volatilities on Era and Xingguang Agricultural 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 Era with a short position of Xingguang Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Era and Xingguang Agricultural.
Diversification Opportunities for Era and Xingguang Agricultural
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Era and Xingguang is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Era Co and Xingguang Agricultural Mach in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xingguang Agricultural and Era 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 Era Co are associated (or correlated) with Xingguang Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xingguang Agricultural has no effect on the direction of Era i.e., Era and Xingguang Agricultural go up and down completely randomly.
Pair Corralation between Era and Xingguang Agricultural
Assuming the 90 days trading horizon Era Co is expected to generate 1.05 times more return on investment than Xingguang Agricultural. However, Era is 1.05 times more volatile than Xingguang Agricultural Mach. It trades about 0.23 of its potential returns per unit of risk. Xingguang Agricultural Mach is currently generating about 0.21 per unit of risk. If you would invest 457.00 in Era Co on September 13, 2024 and sell it today you would earn a total of 65.00 from holding Era Co or generate 14.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Era Co vs. Xingguang Agricultural Mach
Performance |
| Timeline |
| Era Co |
| Xingguang Agricultural |
Era and Xingguang Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Era and Xingguang Agricultural
The main advantage of trading using opposite Era and Xingguang Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Era position performs unexpectedly, Xingguang Agricultural 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 Xingguang Agricultural will offset losses from the drop in Xingguang Agricultural's long position.| Era vs. Xingguang Agricultural Mach | Era vs. Senci Electric Machinery | Era vs. Innovative Medical Management | Era vs. Double Medical Technology |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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