Correlation Between Xiabuxiabu Catering and BBB Foods
Can any of the company-specific risk be diversified away by investing in both Xiabuxiabu Catering and BBB Foods 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 Xiabuxiabu Catering and BBB Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xiabuxiabu Catering Management and BBB Foods, you can compare the effects of market volatilities on Xiabuxiabu Catering and BBB Foods 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 Xiabuxiabu Catering with a short position of BBB Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiabuxiabu Catering and BBB Foods.
Diversification Opportunities for Xiabuxiabu Catering and BBB Foods
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xiabuxiabu and BBB is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Xiabuxiabu Catering Management and BBB Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BBB Foods and Xiabuxiabu Catering 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 Xiabuxiabu Catering Management are associated (or correlated) with BBB Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BBB Foods has no effect on the direction of Xiabuxiabu Catering i.e., Xiabuxiabu Catering and BBB Foods go up and down completely randomly.
Pair Corralation between Xiabuxiabu Catering and BBB Foods
Assuming the 90 days horizon Xiabuxiabu Catering Management is expected to under-perform the BBB Foods. In addition to that, Xiabuxiabu Catering is 1.99 times more volatile than BBB Foods. It trades about -0.09 of its total potential returns per unit of risk. BBB Foods is currently generating about 0.09 per unit of volatility. If you would invest 1,750 in BBB Foods on September 14, 2024 and sell it today you would earn a total of 1,123 from holding BBB Foods or generate 64.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 80.22% |
| Values | Daily Returns |
Xiabuxiabu Catering Management vs. BBB Foods
Performance |
| Timeline |
| Xiabuxiabu Catering |
| BBB Foods |
Xiabuxiabu Catering and BBB Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiabuxiabu Catering and BBB Foods
The main advantage of trading using opposite Xiabuxiabu Catering and BBB Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiabuxiabu Catering position performs unexpectedly, BBB Foods 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 BBB Foods will offset losses from the drop in BBB Foods' long position.| Xiabuxiabu Catering vs. Canlan Ice Sports | Xiabuxiabu Catering vs. Chemours Co | Xiabuxiabu Catering vs. Mativ Holdings | Xiabuxiabu Catering vs. Air Products and |
| BBB Foods vs. Costco Wholesale Corp | BBB Foods vs. BJs Wholesale Club | BBB Foods vs. Dollar Tree | BBB Foods vs. Dollar General |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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