Correlation Between Xiamen Jihong and Namchow Food
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By analyzing existing cross correlation between Xiamen Jihong Package and Namchow Food Group, you can compare the effects of market volatilities on Xiamen Jihong and Namchow Food 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 Xiamen Jihong with a short position of Namchow Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Jihong and Namchow Food.
Diversification Opportunities for Xiamen Jihong and Namchow Food
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xiamen and Namchow is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Jihong Package and Namchow Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Namchow Food Group and Xiamen Jihong 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 Xiamen Jihong Package are associated (or correlated) with Namchow Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Namchow Food Group has no effect on the direction of Xiamen Jihong i.e., Xiamen Jihong and Namchow Food go up and down completely randomly.
Pair Corralation between Xiamen Jihong and Namchow Food
Assuming the 90 days trading horizon Xiamen Jihong Package is expected to generate 1.48 times more return on investment than Namchow Food. However, Xiamen Jihong is 1.48 times more volatile than Namchow Food Group. It trades about 0.04 of its potential returns per unit of risk. Namchow Food Group is currently generating about 0.01 per unit of risk. If you would invest 1,396 in Xiamen Jihong Package on August 25, 2024 and sell it today you would earn a total of 125.00 from holding Xiamen Jihong Package or generate 8.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Jihong Package vs. Namchow Food Group
Performance |
| Timeline |
| Xiamen Jihong Package |
| Namchow Food Group |
Xiamen Jihong and Namchow Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Jihong and Namchow Food
The main advantage of trading using opposite Xiamen Jihong and Namchow Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Jihong position performs unexpectedly, Namchow Food 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 Namchow Food will offset losses from the drop in Namchow Food's long position.| Xiamen Jihong vs. Namchow Food Group | Xiamen Jihong vs. Peoples Insurance of | Xiamen Jihong vs. Zhongyin Babi Food | Xiamen Jihong vs. HaiXin Foods Co |
| Namchow Food vs. Sanbo Hospital Management | Namchow Food vs. Hefei Metalforming Mach | Namchow Food vs. Guangdong Jingyi Metal | Namchow Food vs. CICC Fund Management |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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