Correlation Between XJ Electric and Contec Medical
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By analyzing existing cross correlation between XJ Electric Co and Contec Medical Systems, you can compare the effects of market volatilities on XJ Electric and Contec Medical 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 XJ Electric with a short position of Contec Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of XJ Electric and Contec Medical.
Diversification Opportunities for XJ Electric and Contec Medical
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between 000400 and Contec is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding XJ Electric Co and Contec Medical Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contec Medical Systems and XJ Electric 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 XJ Electric Co are associated (or correlated) with Contec Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Contec Medical Systems has no effect on the direction of XJ Electric i.e., XJ Electric and Contec Medical go up and down completely randomly.
Pair Corralation between XJ Electric and Contec Medical
Assuming the 90 days trading horizon XJ Electric Co is expected to under-perform the Contec Medical. But the stock apears to be less risky and, when comparing its historical volatility, XJ Electric Co is 1.01 times less risky than Contec Medical. The stock trades about -0.24 of its potential returns per unit of risk. The Contec Medical Systems is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest 1,718 in Contec Medical Systems on September 12, 2024 and sell it today you would lose (107.00) from holding Contec Medical Systems or give up 6.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
XJ Electric Co vs. Contec Medical Systems
Performance |
| Timeline |
| XJ Electric |
| Contec Medical Systems |
XJ Electric and Contec Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XJ Electric and Contec Medical
The main advantage of trading using opposite XJ Electric and Contec Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XJ Electric position performs unexpectedly, Contec Medical 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 Contec Medical will offset losses from the drop in Contec Medical's long position.| XJ Electric vs. Shanghai Shuixing Home | XJ Electric vs. Shuhua Sports Co | XJ Electric vs. Nanjing OLO Home | XJ Electric vs. Suofeiya Home Collection |
| Contec Medical vs. Cultural Investment Holdings | Contec Medical vs. Gome Telecom Equipment | Contec Medical vs. Holitech Technology Co | Contec Medical vs. Zotye Automobile Co |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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