Correlation Between Senci Electric and Xingguang Agricultural
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By analyzing existing cross correlation between Senci Electric Machinery and Xingguang Agricultural Mach, you can compare the effects of market volatilities on Senci Electric and Xingguang Agricultural 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 Senci Electric with a short position of Xingguang Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Senci Electric and Xingguang Agricultural.
Diversification Opportunities for Senci Electric and Xingguang Agricultural
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Senci and Xingguang is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Senci Electric Machinery and Xingguang Agricultural Mach in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xingguang Agricultural and Senci Electric 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 Senci Electric Machinery are associated (or correlated) with Xingguang Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xingguang Agricultural has no effect on the direction of Senci Electric i.e., Senci Electric and Xingguang Agricultural go up and down completely randomly.
Pair Corralation between Senci Electric and Xingguang Agricultural
Assuming the 90 days trading horizon Senci Electric Machinery is expected to under-perform the Xingguang Agricultural. But the stock apears to be less risky and, when comparing its historical volatility, Senci Electric Machinery is 1.12 times less risky than Xingguang Agricultural. The stock trades about -0.15 of its potential returns per unit of risk. The Xingguang Agricultural Mach is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 729.00 in Xingguang Agricultural Mach on January 8, 2025 and sell it today you would lose (54.00) from holding Xingguang Agricultural Mach or give up 7.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Senci Electric Machinery vs. Xingguang Agricultural Mach
Performance |
| Timeline |
| Senci Electric Machinery |
| Xingguang Agricultural |
Senci Electric and Xingguang Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Senci Electric and Xingguang Agricultural
The main advantage of trading using opposite Senci Electric and Xingguang Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Senci Electric position performs unexpectedly, Xingguang Agricultural 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 Xingguang Agricultural will offset losses from the drop in Xingguang Agricultural's long position.| Senci Electric vs. Chongqing Genrix Biopharmaceutical | Senci Electric vs. Cambricon Technologies Corp | Senci Electric vs. Zhonghang Electronic Measuring | Senci Electric vs. QuantumCTek Co |
| Xingguang Agricultural vs. Industrial and Commercial | Xingguang Agricultural vs. Kweichow Moutai Co | Xingguang Agricultural vs. China Mobile Limited | Xingguang Agricultural vs. Agricultural Bank of |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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