Correlation Between Xinya Electronic and Suzhou Weizhixiang
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By analyzing existing cross correlation between Xinya Electronic Co and Suzhou Weizhixiang Food, you can compare the effects of market volatilities on Xinya Electronic and Suzhou Weizhixiang 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 Xinya Electronic with a short position of Suzhou Weizhixiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinya Electronic and Suzhou Weizhixiang.
Diversification Opportunities for Xinya Electronic and Suzhou Weizhixiang
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xinya and Suzhou is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Xinya Electronic Co and Suzhou Weizhixiang Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Weizhixiang Food and Xinya Electronic 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 Xinya Electronic Co are associated (or correlated) with Suzhou Weizhixiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Weizhixiang Food has no effect on the direction of Xinya Electronic i.e., Xinya Electronic and Suzhou Weizhixiang go up and down completely randomly.
Pair Corralation between Xinya Electronic and Suzhou Weizhixiang
Assuming the 90 days trading horizon Xinya Electronic Co is expected to generate 1.45 times more return on investment than Suzhou Weizhixiang. However, Xinya Electronic is 1.45 times more volatile than Suzhou Weizhixiang Food. It trades about -0.02 of its potential returns per unit of risk. Suzhou Weizhixiang Food is currently generating about -0.39 per unit of risk. If you would invest 1,517 in Xinya Electronic Co on October 12, 2024 and sell it today you would lose (53.00) from holding Xinya Electronic Co or give up 3.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinya Electronic Co vs. Suzhou Weizhixiang Food
Performance |
| Timeline |
| Xinya Electronic |
| Suzhou Weizhixiang Food |
Xinya Electronic and Suzhou Weizhixiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinya Electronic and Suzhou Weizhixiang
The main advantage of trading using opposite Xinya Electronic and Suzhou Weizhixiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinya Electronic position performs unexpectedly, Suzhou Weizhixiang 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 Suzhou Weizhixiang will offset losses from the drop in Suzhou Weizhixiang's long position.| Xinya Electronic vs. China Petroleum Chemical | Xinya Electronic vs. PetroChina Co Ltd | Xinya Electronic vs. China State Construction | Xinya Electronic vs. China Railway Group |
| Suzhou Weizhixiang vs. Xinya Electronic Co | Suzhou Weizhixiang vs. Guangzhou Dongfang Hotel | Suzhou Weizhixiang vs. Sihui Fuji Electronics | Suzhou Weizhixiang vs. Telling Telecommunication Holding |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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