Correlation Between Costco Wholesale and Xiwang Special
Can any of the company-specific risk be diversified away by investing in both Costco Wholesale and Xiwang Special at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Costco Wholesale and Xiwang Special into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Costco Wholesale Corp and Xiwang Special Steel, you can compare the effects of market volatilities on Costco Wholesale and Xiwang Special 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 Costco Wholesale with a short position of Xiwang Special. Check out your portfolio center. Please also check ongoing floating volatility patterns of Costco Wholesale and Xiwang Special.
Diversification Opportunities for Costco Wholesale and Xiwang Special
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Costco and Xiwang is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Costco Wholesale Corp and Xiwang Special Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiwang Special Steel and Costco Wholesale 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 Costco Wholesale Corp are associated (or correlated) with Xiwang Special. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiwang Special Steel has no effect on the direction of Costco Wholesale i.e., Costco Wholesale and Xiwang Special go up and down completely randomly.
Pair Corralation between Costco Wholesale and Xiwang Special
If you would invest 0.01 in Xiwang Special Steel on October 16, 2024 and sell it today you would earn a total of 0.00 from holding Xiwang Special Steel or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 88.24% |
| Values | Daily Returns |
Costco Wholesale Corp vs. Xiwang Special Steel
Performance |
| Timeline |
| Costco Wholesale Corp |
| Xiwang Special Steel |
Costco Wholesale and Xiwang Special Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Costco Wholesale and Xiwang Special
The main advantage of trading using opposite Costco Wholesale and Xiwang Special positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Costco Wholesale position performs unexpectedly, Xiwang Special 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 Special will offset losses from the drop in Xiwang Special's long position.| Costco Wholesale vs. American Public Education | Costco Wholesale vs. Forsys Metals Corp | Costco Wholesale vs. CAREER EDUCATION | Costco Wholesale vs. Jacquet Metal Service |
| Xiwang Special vs. Nucor | Xiwang Special vs. Reliance Steel Aluminum | Xiwang Special vs. Superior Plus Corp | Xiwang Special vs. NMI Holdings |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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