Correlation Between Zhejiang Huatong and Xiwang Foodstuffs
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By analyzing existing cross correlation between Zhejiang Huatong Meat and Xiwang Foodstuffs Co, you can compare the effects of market volatilities on Zhejiang Huatong 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 Zhejiang Huatong with a short position of Xiwang Foodstuffs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Huatong and Xiwang Foodstuffs.
Diversification Opportunities for Zhejiang Huatong and Xiwang Foodstuffs
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhejiang and Xiwang is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Huatong Meat and Xiwang Foodstuffs Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiwang Foodstuffs and Zhejiang Huatong 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 Zhejiang Huatong Meat 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 Zhejiang Huatong i.e., Zhejiang Huatong and Xiwang Foodstuffs go up and down completely randomly.
Pair Corralation between Zhejiang Huatong and Xiwang Foodstuffs
Assuming the 90 days trading horizon Zhejiang Huatong Meat is expected to under-perform the Xiwang Foodstuffs. In addition to that, Zhejiang Huatong is 1.17 times more volatile than Xiwang Foodstuffs Co. It trades about -0.28 of its total potential returns per unit of risk. Xiwang Foodstuffs Co is currently generating about -0.2 per unit of volatility. If you would invest 373.00 in Xiwang Foodstuffs Co on October 28, 2024 and sell it today you would lose (37.00) from holding Xiwang Foodstuffs Co or give up 9.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Huatong Meat vs. Xiwang Foodstuffs Co
Performance |
| Timeline |
| Zhejiang Huatong Meat |
| Xiwang Foodstuffs |
Zhejiang Huatong and Xiwang Foodstuffs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Huatong and Xiwang Foodstuffs
The main advantage of trading using opposite Zhejiang Huatong and Xiwang Foodstuffs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Huatong 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.| Zhejiang Huatong vs. Ligao Foods CoLtd | Zhejiang Huatong vs. Hainan Haiqi Transportation | Zhejiang Huatong vs. Great Sun Foods Co | Zhejiang Huatong vs. Gan Yuan Foods |
| Xiwang Foodstuffs vs. Jiujiang Shanshui Technology | Xiwang Foodstuffs vs. HeBei Jinniu Chemical | Xiwang Foodstuffs vs. Jinyu Bio Technology Co | Xiwang Foodstuffs vs. Gansu Huangtai Wine marketing |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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