Correlation Between Western Mining and Xizi Clean
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By analyzing existing cross correlation between Western Mining Co and Xizi Clean Energy, you can compare the effects of market volatilities on Western Mining and Xizi Clean 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 Western Mining with a short position of Xizi Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Mining and Xizi Clean.
Diversification Opportunities for Western Mining and Xizi Clean
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Western and Xizi is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Western Mining Co and Xizi Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xizi Clean Energy and Western Mining 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 Western Mining Co are associated (or correlated) with Xizi Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xizi Clean Energy has no effect on the direction of Western Mining i.e., Western Mining and Xizi Clean go up and down completely randomly.
Pair Corralation between Western Mining and Xizi Clean
Assuming the 90 days trading horizon Western Mining Co is expected to generate 0.54 times more return on investment than Xizi Clean. However, Western Mining Co is 1.85 times less risky than Xizi Clean. It trades about 0.07 of its potential returns per unit of risk. Xizi Clean Energy is currently generating about 0.03 per unit of risk. If you would invest 1,684 in Western Mining Co on October 30, 2024 and sell it today you would earn a total of 59.00 from holding Western Mining Co or generate 3.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Mining Co vs. Xizi Clean Energy
Performance |
| Timeline |
| Western Mining |
| Xizi Clean Energy |
Western Mining and Xizi Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Mining and Xizi Clean
The main advantage of trading using opposite Western Mining and Xizi Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Mining position performs unexpectedly, Xizi Clean 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 Xizi Clean will offset losses from the drop in Xizi Clean's long position.| Western Mining vs. Touchstone International Medical | Western Mining vs. Tongyu Communication | Western Mining vs. Qingdao Haier Biomedical | Western Mining vs. Kontour Medical Technology |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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