Correlation Between Xian International and Innovative Medical
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By analyzing existing cross correlation between Xian International Medical and Innovative Medical Management, you can compare the effects of market volatilities on Xian International and Innovative 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 Xian International with a short position of Innovative Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xian International and Innovative Medical.
Diversification Opportunities for Xian International and Innovative Medical
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xian and Innovative is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Xian International Medical and Innovative Medical Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovative Medical 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 Innovative Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovative Medical has no effect on the direction of Xian International i.e., Xian International and Innovative Medical go up and down completely randomly.
Pair Corralation between Xian International and Innovative Medical
Assuming the 90 days trading horizon Xian International Medical is expected to under-perform the Innovative Medical. But the stock apears to be less risky and, when comparing its historical volatility, Xian International Medical is 1.34 times less risky than Innovative Medical. The stock trades about -0.04 of its potential returns per unit of risk. The Innovative Medical Management is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 743.00 in Innovative Medical Management on September 2, 2024 and sell it today you would earn a total of 146.00 from holding Innovative Medical Management or generate 19.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xian International Medical vs. Innovative Medical Management
Performance |
| Timeline |
| Xian International |
| Innovative Medical |
Xian International and Innovative Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xian International and Innovative Medical
The main advantage of trading using opposite Xian International and Innovative Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xian International position performs unexpectedly, Innovative 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 Innovative Medical will offset losses from the drop in Innovative Medical's long position.| Xian International vs. Dalian Zeus Entertainment | Xian International vs. Shenzhen Kexin Communication | Xian International vs. Threes Company Media | Xian International vs. Eastern Communications Co |
| Innovative Medical vs. China Life Insurance | Innovative Medical vs. Cinda Securities Co | Innovative Medical vs. Piotech Inc A | Innovative Medical vs. Dongxing Sec 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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