Correlation Between Xiangpiaopiao Food and Guangzhou Seagull
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By analyzing existing cross correlation between Xiangpiaopiao Food Co and Guangzhou Seagull Kitchen, you can compare the effects of market volatilities on Xiangpiaopiao Food and Guangzhou Seagull 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 Xiangpiaopiao Food with a short position of Guangzhou Seagull. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangpiaopiao Food and Guangzhou Seagull.
Diversification Opportunities for Xiangpiaopiao Food and Guangzhou Seagull
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Xiangpiaopiao and Guangzhou is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Xiangpiaopiao Food Co and Guangzhou Seagull Kitchen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Seagull Kitchen and Xiangpiaopiao Food 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 Xiangpiaopiao Food Co are associated (or correlated) with Guangzhou Seagull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Seagull Kitchen has no effect on the direction of Xiangpiaopiao Food i.e., Xiangpiaopiao Food and Guangzhou Seagull go up and down completely randomly.
Pair Corralation between Xiangpiaopiao Food and Guangzhou Seagull
Assuming the 90 days trading horizon Xiangpiaopiao Food Co is expected to under-perform the Guangzhou Seagull. In addition to that, Xiangpiaopiao Food is 1.49 times more volatile than Guangzhou Seagull Kitchen. It trades about -0.21 of its total potential returns per unit of risk. Guangzhou Seagull Kitchen is currently generating about -0.08 per unit of volatility. If you would invest 301.00 in Guangzhou Seagull Kitchen on October 28, 2024 and sell it today you would lose (18.00) from holding Guangzhou Seagull Kitchen or give up 5.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiangpiaopiao Food Co vs. Guangzhou Seagull Kitchen
Performance |
| Timeline |
| Xiangpiaopiao Food |
| Guangzhou Seagull Kitchen |
Xiangpiaopiao Food and Guangzhou Seagull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangpiaopiao Food and Guangzhou Seagull
The main advantage of trading using opposite Xiangpiaopiao Food and Guangzhou Seagull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangpiaopiao Food position performs unexpectedly, Guangzhou Seagull 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 Guangzhou Seagull will offset losses from the drop in Guangzhou Seagull's long position.| Xiangpiaopiao Food vs. Kweichow Moutai Co | Xiangpiaopiao Food vs. Contemporary Amperex Technology | Xiangpiaopiao Food vs. G bits Network Technology | Xiangpiaopiao Food vs. Beijing Roborock Technology |
| Guangzhou Seagull vs. PetroChina Co Ltd | Guangzhou Seagull vs. Industrial and Commercial | Guangzhou Seagull vs. China Petroleum Chemical | Guangzhou Seagull vs. China Construction Bank |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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