Correlation Between Beijing Roborock and Xiwang Foodstuffs
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By analyzing existing cross correlation between Beijing Roborock Technology and Xiwang Foodstuffs Co, you can compare the effects of market volatilities on Beijing Roborock and Xiwang Foodstuffs 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 Beijing Roborock with a short position of Xiwang Foodstuffs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Roborock and Xiwang Foodstuffs.
Diversification Opportunities for Beijing Roborock and Xiwang Foodstuffs
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Beijing and Xiwang is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Roborock Technology and Xiwang Foodstuffs Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiwang Foodstuffs and Beijing Roborock 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 Beijing Roborock Technology are associated (or correlated) with Xiwang Foodstuffs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiwang Foodstuffs has no effect on the direction of Beijing Roborock i.e., Beijing Roborock and Xiwang Foodstuffs go up and down completely randomly.
Pair Corralation between Beijing Roborock and Xiwang Foodstuffs
Assuming the 90 days trading horizon Beijing Roborock Technology is expected to generate 0.81 times more return on investment than Xiwang Foodstuffs. However, Beijing Roborock Technology is 1.23 times less risky than Xiwang Foodstuffs. It trades about -0.05 of its potential returns per unit of risk. Xiwang Foodstuffs Co is currently generating about -0.23 per unit of risk. If you would invest 23,519 in Beijing Roborock Technology on November 7, 2024 and sell it today you would lose (640.00) from holding Beijing Roborock Technology or give up 2.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Roborock Technology vs. Xiwang Foodstuffs Co
Performance |
| Timeline |
| Beijing Roborock Tec |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| Xiwang Foodstuffs |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Beijing Roborock and Xiwang Foodstuffs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Roborock and Xiwang Foodstuffs
The main advantage of trading using opposite Beijing Roborock and Xiwang Foodstuffs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Roborock position performs unexpectedly, Xiwang Foodstuffs 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 Xiwang Foodstuffs will offset losses from the drop in Xiwang Foodstuffs' long position.The idea behind Beijing Roborock Technology and Xiwang Foodstuffs Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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