Correlation Between Suzhou Fushilai and Xiwang Foodstuffs
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By analyzing existing cross correlation between Suzhou Fushilai Pharmaceutical and Xiwang Foodstuffs Co, you can compare the effects of market volatilities on Suzhou Fushilai 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 Suzhou Fushilai with a short position of Xiwang Foodstuffs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Fushilai and Xiwang Foodstuffs.
Diversification Opportunities for Suzhou Fushilai and Xiwang Foodstuffs
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Suzhou and Xiwang is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Fushilai Pharmaceutical and Xiwang Foodstuffs Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiwang Foodstuffs and Suzhou Fushilai 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 Suzhou Fushilai Pharmaceutical 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 Suzhou Fushilai i.e., Suzhou Fushilai and Xiwang Foodstuffs go up and down completely randomly.
Pair Corralation between Suzhou Fushilai and Xiwang Foodstuffs
Assuming the 90 days trading horizon Suzhou Fushilai Pharmaceutical is expected to generate 0.81 times more return on investment than Xiwang Foodstuffs. However, Suzhou Fushilai Pharmaceutical is 1.23 times less risky than Xiwang Foodstuffs. It trades about -0.18 of its potential returns per unit of risk. Xiwang Foodstuffs Co is currently generating about -0.19 per unit of risk. If you would invest 2,480 in Suzhou Fushilai Pharmaceutical on October 24, 2024 and sell it today you would lose (184.00) from holding Suzhou Fushilai Pharmaceutical or give up 7.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Fushilai Pharmaceutical vs. Xiwang Foodstuffs Co
Performance |
| Timeline |
| Suzhou Fushilai Phar |
| Xiwang Foodstuffs |
Suzhou Fushilai and Xiwang Foodstuffs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Fushilai and Xiwang Foodstuffs
The main advantage of trading using opposite Suzhou Fushilai and Xiwang Foodstuffs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Fushilai 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.| Suzhou Fushilai vs. Xiwang Foodstuffs Co | Suzhou Fushilai vs. Qingdao Foods Co | Suzhou Fushilai vs. Beijing Sanyuan Foods | Suzhou Fushilai vs. Central Plains Environment |
| Xiwang Foodstuffs vs. Cambricon Technologies Corp | Xiwang Foodstuffs vs. SGSG Sciencetechnology Co | Xiwang Foodstuffs vs. Loongson Technology Corp | Xiwang Foodstuffs vs. Jiangsu Flowers King |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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