Correlation Between Xian International and Guangzhou Ruoyuchen
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By analyzing existing cross correlation between Xian International Medical and Guangzhou Ruoyuchen Information, you can compare the effects of market volatilities on Xian International and Guangzhou Ruoyuchen 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 Guangzhou Ruoyuchen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xian International and Guangzhou Ruoyuchen.
Diversification Opportunities for Xian International and Guangzhou Ruoyuchen
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xian and Guangzhou is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Xian International Medical and Guangzhou Ruoyuchen Informatio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Ruoyuchen 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 Guangzhou Ruoyuchen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Ruoyuchen has no effect on the direction of Xian International i.e., Xian International and Guangzhou Ruoyuchen go up and down completely randomly.
Pair Corralation between Xian International and Guangzhou Ruoyuchen
Assuming the 90 days trading horizon Xian International Medical is expected to under-perform the Guangzhou Ruoyuchen. But the stock apears to be less risky and, when comparing its historical volatility, Xian International Medical is 1.39 times less risky than Guangzhou Ruoyuchen. The stock trades about -0.05 of its potential returns per unit of risk. The Guangzhou Ruoyuchen Information is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,291 in Guangzhou Ruoyuchen Information on August 29, 2024 and sell it today you would earn a total of 789.00 from holding Guangzhou Ruoyuchen Information or generate 61.12% 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. Guangzhou Ruoyuchen Informatio
Performance |
| Timeline |
| Xian International |
| Guangzhou Ruoyuchen |
Xian International and Guangzhou Ruoyuchen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xian International and Guangzhou Ruoyuchen
The main advantage of trading using opposite Xian International and Guangzhou Ruoyuchen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xian International position performs unexpectedly, Guangzhou Ruoyuchen 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 Guangzhou Ruoyuchen will offset losses from the drop in Guangzhou Ruoyuchen's long position.| Xian International vs. Yangmei Chemical Co | Xian International vs. Longxing Chemical Stock | Xian International vs. Guangzhou Jointas Chemical | Xian International vs. Ningxia Younglight Chemicals |
| Guangzhou Ruoyuchen vs. Industrial and Commercial | Guangzhou Ruoyuchen vs. Agricultural Bank of | Guangzhou Ruoyuchen vs. China Construction Bank | Guangzhou Ruoyuchen vs. Bank of China |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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