Correlation Between Xian International and Guangdong Fenghua
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By analyzing existing cross correlation between Xian International Medical and Guangdong Fenghua Advanced, you can compare the effects of market volatilities on Xian International and Guangdong Fenghua 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 Xian International with a short position of Guangdong Fenghua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xian International and Guangdong Fenghua.
Diversification Opportunities for Xian International and Guangdong Fenghua
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xian and Guangdong is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Xian International Medical and Guangdong Fenghua Advanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Fenghua and Xian International 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 Xian International Medical are associated (or correlated) with Guangdong Fenghua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Fenghua has no effect on the direction of Xian International i.e., Xian International and Guangdong Fenghua go up and down completely randomly.
Pair Corralation between Xian International and Guangdong Fenghua
Assuming the 90 days trading horizon Xian International Medical is expected to under-perform the Guangdong Fenghua. In addition to that, Xian International is 1.03 times more volatile than Guangdong Fenghua Advanced. It trades about -0.03 of its total potential returns per unit of risk. Guangdong Fenghua Advanced is currently generating about 0.03 per unit of volatility. If you would invest 1,418 in Guangdong Fenghua Advanced on September 3, 2024 and sell it today you would earn a total of 117.00 from holding Guangdong Fenghua Advanced or generate 8.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xian International Medical vs. Guangdong Fenghua Advanced
Performance |
| Timeline |
| Xian International |
| Guangdong Fenghua |
Xian International and Guangdong Fenghua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xian International and Guangdong Fenghua
The main advantage of trading using opposite Xian International and Guangdong Fenghua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xian International position performs unexpectedly, Guangdong Fenghua 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 Guangdong Fenghua will offset losses from the drop in Guangdong Fenghua's long position.| Xian International vs. Heren Health Co | Xian International vs. Yindu Kitchen Equipment | Xian International vs. PKU HealthCare Corp | Xian International vs. By health |
| Guangdong Fenghua vs. Jiangsu Jinling Sports | Guangdong Fenghua vs. Jiujiang Shanshui Technology | Guangdong Fenghua vs. HanS Laser Tech | Guangdong Fenghua vs. Shuhua Sports 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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