Correlation Between Shenzhen and Xiwang Foodstuffs
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By analyzing existing cross correlation between Shenzhen AV Display Co and Xiwang Foodstuffs Co, you can compare the effects of market volatilities on Shenzhen 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 Shenzhen with a short position of Xiwang Foodstuffs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen and Xiwang Foodstuffs.
Diversification Opportunities for Shenzhen and Xiwang Foodstuffs
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and Xiwang is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen AV Display Co and Xiwang Foodstuffs Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiwang Foodstuffs and Shenzhen 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 Shenzhen AV Display Co 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 Shenzhen i.e., Shenzhen and Xiwang Foodstuffs go up and down completely randomly.
Pair Corralation between Shenzhen and Xiwang Foodstuffs
Assuming the 90 days trading horizon Shenzhen AV Display Co is expected to generate 0.91 times more return on investment than Xiwang Foodstuffs. However, Shenzhen AV Display Co is 1.1 times less risky than Xiwang Foodstuffs. It trades about -0.22 of its potential returns per unit of risk. Xiwang Foodstuffs Co is currently generating about -0.37 per unit of risk. If you would invest 3,428 in Shenzhen AV Display Co on October 12, 2024 and sell it today you would lose (527.00) from holding Shenzhen AV Display Co or give up 15.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Shenzhen AV Display Co vs. Xiwang Foodstuffs Co
Performance |
| Timeline |
| Shenzhen AV Display |
| Xiwang Foodstuffs |
Shenzhen and Xiwang Foodstuffs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen and Xiwang Foodstuffs
The main advantage of trading using opposite Shenzhen and Xiwang Foodstuffs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen 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.| Shenzhen vs. Sharetronic Data Technology | Shenzhen vs. XiaMen HongXin Electron tech | Shenzhen vs. Dareway Software Co | Shenzhen vs. Dhc Software Co |
| Xiwang Foodstuffs vs. Shenzhen AV Display Co | Xiwang Foodstuffs vs. Tianshui Huatian Technology | Xiwang Foodstuffs vs. Soyea Technology Co | Xiwang Foodstuffs vs. China Sports Industry |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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