Correlation Between Xian International and Chengdu B
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By analyzing existing cross correlation between Xian International Medical and Chengdu B ray Media, you can compare the effects of market volatilities on Xian International and Chengdu B 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 Chengdu B. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xian International and Chengdu B.
Diversification Opportunities for Xian International and Chengdu B
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xian and Chengdu is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Xian International Medical and Chengdu B ray Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu B ray 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 Chengdu B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu B ray has no effect on the direction of Xian International i.e., Xian International and Chengdu B go up and down completely randomly.
Pair Corralation between Xian International and Chengdu B
Assuming the 90 days trading horizon Xian International Medical is expected to generate 1.5 times more return on investment than Chengdu B. However, Xian International is 1.5 times more volatile than Chengdu B ray Media. It trades about 0.2 of its potential returns per unit of risk. Chengdu B ray Media is currently generating about 0.17 per unit of risk. If you would invest 528.00 in Xian International Medical on September 2, 2024 and sell it today you would earn a total of 92.00 from holding Xian International Medical or generate 17.42% 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. Chengdu B ray Media
Performance |
| Timeline |
| Xian International |
| Chengdu B ray |
Xian International and Chengdu B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xian International and Chengdu B
The main advantage of trading using opposite Xian International and Chengdu B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xian International position performs unexpectedly, Chengdu B 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 Chengdu B will offset losses from the drop in Chengdu B'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 |
| Chengdu B vs. Kunshan Guoli Electronic | Chengdu B vs. Chison Medical Technologies | Chengdu B vs. Xian International Medical | Chengdu B vs. Shenzhen Glory Medical |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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