Correlation Between Sungrow Power and Xilinmen Furniture
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By analyzing existing cross correlation between Sungrow Power Supply and Xilinmen Furniture Co, you can compare the effects of market volatilities on Sungrow Power and Xilinmen Furniture 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 Sungrow Power with a short position of Xilinmen Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sungrow Power and Xilinmen Furniture.
Diversification Opportunities for Sungrow Power and Xilinmen Furniture
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sungrow and Xilinmen is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Sungrow Power Supply and Xilinmen Furniture Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xilinmen Furniture and Sungrow Power 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 Sungrow Power Supply are associated (or correlated) with Xilinmen Furniture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xilinmen Furniture has no effect on the direction of Sungrow Power i.e., Sungrow Power and Xilinmen Furniture go up and down completely randomly.
Pair Corralation between Sungrow Power and Xilinmen Furniture
Assuming the 90 days trading horizon Sungrow Power Supply is expected to under-perform the Xilinmen Furniture. In addition to that, Sungrow Power is 1.13 times more volatile than Xilinmen Furniture Co. It trades about -0.21 of its total potential returns per unit of risk. Xilinmen Furniture Co is currently generating about -0.11 per unit of volatility. If you would invest 1,946 in Xilinmen Furniture Co on September 12, 2024 and sell it today you would lose (106.00) from holding Xilinmen Furniture Co or give up 5.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sungrow Power Supply vs. Xilinmen Furniture Co
Performance |
| Timeline |
| Sungrow Power Supply |
| Xilinmen Furniture |
Sungrow Power and Xilinmen Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sungrow Power and Xilinmen Furniture
The main advantage of trading using opposite Sungrow Power and Xilinmen Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sungrow Power position performs unexpectedly, Xilinmen Furniture 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 Xilinmen Furniture will offset losses from the drop in Xilinmen Furniture's long position.| Sungrow Power vs. Huafa Industrial Co | Sungrow Power vs. Hengdian Entertainment Co | Sungrow Power vs. Shuhua Sports Co | Sungrow Power vs. Sichuan Yahua Industrial |
| Xilinmen Furniture vs. Lutian Machinery Co | Xilinmen Furniture vs. PetroChina Co Ltd | Xilinmen Furniture vs. Bank of China | Xilinmen Furniture vs. Gansu Jiu Steel |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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