Correlation Between Namchow Food and Xiangpiaopiao Food
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By analyzing existing cross correlation between Namchow Food Group and Xiangpiaopiao Food Co, you can compare the effects of market volatilities on Namchow Food and Xiangpiaopiao Food 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 Namchow Food with a short position of Xiangpiaopiao Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Namchow Food and Xiangpiaopiao Food.
Diversification Opportunities for Namchow Food and Xiangpiaopiao Food
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Namchow and Xiangpiaopiao is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Namchow Food Group and Xiangpiaopiao Food Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangpiaopiao Food and Namchow 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 Namchow Food Group are associated (or correlated) with Xiangpiaopiao Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiangpiaopiao Food has no effect on the direction of Namchow Food i.e., Namchow Food and Xiangpiaopiao Food go up and down completely randomly.
Pair Corralation between Namchow Food and Xiangpiaopiao Food
Assuming the 90 days trading horizon Namchow Food Group is expected to generate 0.71 times more return on investment than Xiangpiaopiao Food. However, Namchow Food Group is 1.4 times less risky than Xiangpiaopiao Food. It trades about 0.04 of its potential returns per unit of risk. Xiangpiaopiao Food Co is currently generating about -0.12 per unit of risk. If you would invest 1,702 in Namchow Food Group on November 1, 2024 and sell it today you would earn a total of 30.00 from holding Namchow Food Group or generate 1.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Namchow Food Group vs. Xiangpiaopiao Food Co
Performance |
| Timeline |
| Namchow Food Group |
| Xiangpiaopiao Food |
Namchow Food and Xiangpiaopiao Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Namchow Food and Xiangpiaopiao Food
The main advantage of trading using opposite Namchow Food and Xiangpiaopiao Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Namchow Food position performs unexpectedly, Xiangpiaopiao Food 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 Xiangpiaopiao Food will offset losses from the drop in Xiangpiaopiao Food's long position.| Namchow Food vs. Agricultural Bank of | Namchow Food vs. Hongrun Construction Group | Namchow Food vs. Shantui Construction Machinery | Namchow Food vs. Zotye Automobile Co |
| Xiangpiaopiao Food vs. HaiXin Foods Co | Xiangpiaopiao Food vs. JuneYao Dairy Co | Xiangpiaopiao Food vs. Namchow Food Group | Xiangpiaopiao Food vs. Gan Yuan Foods |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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