Correlation Between Xiwang Foodstuffs and Circuit Fabology

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Xiwang Foodstuffs and Circuit Fabology 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 Xiwang Foodstuffs and Circuit Fabology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xiwang Foodstuffs Co and Circuit Fabology Microelectronics, you can compare the effects of market volatilities on Xiwang Foodstuffs and Circuit Fabology 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 Xiwang Foodstuffs with a short position of Circuit Fabology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiwang Foodstuffs and Circuit Fabology.

Diversification Opportunities for Xiwang Foodstuffs and Circuit Fabology

XiwangCircuitDiversified AwayXiwangCircuitDiversified Away100%
0.38
  Correlation Coefficient

Weak diversification

The 3 months correlation between Xiwang and Circuit is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Xiwang Foodstuffs Co and Circuit Fabology Microelectron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Circuit Fabology Mic and Xiwang Foodstuffs 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 Xiwang Foodstuffs Co are associated (or correlated) with Circuit Fabology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Circuit Fabology Mic has no effect on the direction of Xiwang Foodstuffs i.e., Xiwang Foodstuffs and Circuit Fabology go up and down completely randomly.

Pair Corralation between Xiwang Foodstuffs and Circuit Fabology

Assuming the 90 days trading horizon Xiwang Foodstuffs Co is expected to under-perform the Circuit Fabology. In addition to that, Xiwang Foodstuffs is 1.01 times more volatile than Circuit Fabology Microelectronics. It trades about -0.02 of its total potential returns per unit of risk. Circuit Fabology Microelectronics is currently generating about -0.01 per unit of volatility. If you would invest  8,100  in Circuit Fabology Microelectronics on October 27, 2024 and sell it today you would lose (2,130) from holding Circuit Fabology Microelectronics or give up 26.3% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Xiwang Foodstuffs Co  vs.  Circuit Fabology Microelectron

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 0204060
JavaScript chart by amCharts 3.21.15000639 688630
       Timeline  
Xiwang Foodstuffs 

Risk-Adjusted Performance

3 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Xiwang Foodstuffs Co are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Xiwang Foodstuffs sustained solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan3.544.55
Circuit Fabology Mic 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Circuit Fabology Microelectronics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan5560657075

Xiwang Foodstuffs and Circuit Fabology Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-14.75-11.04-7.34-3.640.03.747.5411.3415.14 0.010.020.030.040.05
JavaScript chart by amCharts 3.21.15000639 688630
       Returns  

Pair Trading with Xiwang Foodstuffs and Circuit Fabology

The main advantage of trading using opposite Xiwang Foodstuffs and Circuit Fabology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiwang Foodstuffs position performs unexpectedly, Circuit Fabology 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 Circuit Fabology will offset losses from the drop in Circuit Fabology's long position.
The idea behind Xiwang Foodstuffs Co and Circuit Fabology Microelectronics 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.

Other Complementary Tools

Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Stock Screener
Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Content Syndication
Quickly integrate customizable finance content to your own investment portal