Correlation Between Changshu Tianyin and Xiwang Foodstuffs
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By analyzing existing cross correlation between Changshu Tianyin Electromechan and Xiwang Foodstuffs Co, you can compare the effects of market volatilities on Changshu Tianyin 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 Changshu Tianyin with a short position of Xiwang Foodstuffs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changshu Tianyin and Xiwang Foodstuffs.
Diversification Opportunities for Changshu Tianyin and Xiwang Foodstuffs
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Changshu and Xiwang is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Changshu Tianyin Electromechan and Xiwang Foodstuffs Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiwang Foodstuffs and Changshu Tianyin 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 Changshu Tianyin Electromechan 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 Changshu Tianyin i.e., Changshu Tianyin and Xiwang Foodstuffs go up and down completely randomly.
Pair Corralation between Changshu Tianyin and Xiwang Foodstuffs
Assuming the 90 days trading horizon Changshu Tianyin is expected to generate 3.26 times less return on investment than Xiwang Foodstuffs. But when comparing it to its historical volatility, Changshu Tianyin Electromechan is 1.66 times less risky than Xiwang Foodstuffs. It trades about 0.08 of its potential returns per unit of risk. Xiwang Foodstuffs Co is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 351.00 in Xiwang Foodstuffs Co on September 5, 2024 and sell it today you would earn a total of 67.00 from holding Xiwang Foodstuffs Co or generate 19.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changshu Tianyin Electromechan vs. Xiwang Foodstuffs Co
Performance |
| Timeline |
| Changshu Tianyin Ele |
| Xiwang Foodstuffs |
Changshu Tianyin and Xiwang Foodstuffs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changshu Tianyin and Xiwang Foodstuffs
The main advantage of trading using opposite Changshu Tianyin and Xiwang Foodstuffs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changshu Tianyin 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.| Changshu Tianyin vs. Xiwang Foodstuffs Co | Changshu Tianyin vs. Bomesc Offshore Engineering | Changshu Tianyin vs. Zhongyin Babi Food | Changshu Tianyin vs. Shenzhen Noposion Agrochemicals |
| Xiwang Foodstuffs vs. Chengdu Xingrong Investment | Xiwang Foodstuffs vs. Hunan Investment Group | Xiwang Foodstuffs vs. Beijing Mainstreets Investment | Xiwang Foodstuffs vs. Metro Investment Development |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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