Correlation Between Xian International and Wonders Information
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By analyzing existing cross correlation between Xian International Medical and Wonders Information, you can compare the effects of market volatilities on Xian International and Wonders Information 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 Wonders Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xian International and Wonders Information.
Diversification Opportunities for Xian International and Wonders Information
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xian and Wonders is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Xian International Medical and Wonders Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wonders Information 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 Wonders Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wonders Information has no effect on the direction of Xian International i.e., Xian International and Wonders Information go up and down completely randomly.
Pair Corralation between Xian International and Wonders Information
Assuming the 90 days trading horizon Xian International is expected to generate 1.95 times less return on investment than Wonders Information. But when comparing it to its historical volatility, Xian International Medical is 1.56 times less risky than Wonders Information. It trades about 0.16 of its potential returns per unit of risk. Wonders Information is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 514.00 in Wonders Information on September 12, 2024 and sell it today you would earn a total of 430.00 from holding Wonders Information or generate 83.66% 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. Wonders Information
Performance |
| Timeline |
| Xian International |
| Wonders Information |
Xian International and Wonders Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xian International and Wonders Information
The main advantage of trading using opposite Xian International and Wonders Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xian International position performs unexpectedly, Wonders Information 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 Wonders Information will offset losses from the drop in Wonders Information's long position.| Xian International vs. HaiXin Foods Co | Xian International vs. JiShi Media Co | Xian International vs. Gan Yuan Foods | Xian International vs. Threes Company Media |
| Wonders Information vs. China Petroleum Chemical | Wonders Information vs. PetroChina Co Ltd | Wonders Information vs. China State Construction | Wonders Information vs. China Railway Group |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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