Correlation Between Xingguang Agricultural and Era
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xingguang Agricultural Mach and Era Co, you can compare the effects of market volatilities on Xingguang Agricultural and Era 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 Xingguang Agricultural with a short position of Era. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xingguang Agricultural and Era.
Diversification Opportunities for Xingguang Agricultural and Era
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xingguang and Era is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Xingguang Agricultural Mach and Era Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Era Co and Xingguang Agricultural 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 Xingguang Agricultural Mach are associated (or correlated) with Era. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Era Co has no effect on the direction of Xingguang Agricultural i.e., Xingguang Agricultural and Era go up and down completely randomly.
Pair Corralation between Xingguang Agricultural and Era
Assuming the 90 days trading horizon Xingguang Agricultural Mach is expected to generate 1.0 times more return on investment than Era. However, Xingguang Agricultural is 1.0 times more volatile than Era Co. It trades about 0.26 of its potential returns per unit of risk. Era Co is currently generating about 0.24 per unit of risk. If you would invest 927.00 in Xingguang Agricultural Mach on September 14, 2024 and sell it today you would earn a total of 149.00 from holding Xingguang Agricultural Mach or generate 16.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xingguang Agricultural Mach vs. Era Co
Performance |
| Timeline |
| Xingguang Agricultural |
| Era Co |
Xingguang Agricultural and Era Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xingguang Agricultural and Era
The main advantage of trading using opposite Xingguang Agricultural and Era positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xingguang Agricultural position performs unexpectedly, Era 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 Era will offset losses from the drop in Era's long position.| Xingguang Agricultural vs. Ming Yang Smart | Xingguang Agricultural vs. 159681 | Xingguang Agricultural vs. 159005 | Xingguang Agricultural vs. Loctek Ergonomic Technology |
| Era vs. Ningbo Ligong Online | Era vs. Haima Automobile Group | Era vs. Zoy Home Furnishing | Era vs. Songz Automobile Air |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Global Correlations Find global opportunities by holding instruments from different markets |