Correlation Between Xian International and Dongxing Sec
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By analyzing existing cross correlation between Xian International Medical and Dongxing Sec Co, you can compare the effects of market volatilities on Xian International and Dongxing Sec 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 Dongxing Sec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xian International and Dongxing Sec.
Diversification Opportunities for Xian International and Dongxing Sec
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xian and Dongxing is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Xian International Medical and Dongxing Sec Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongxing Sec 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 Dongxing Sec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongxing Sec has no effect on the direction of Xian International i.e., Xian International and Dongxing Sec go up and down completely randomly.
Pair Corralation between Xian International and Dongxing Sec
Assuming the 90 days trading horizon Xian International Medical is expected to generate 1.14 times more return on investment than Dongxing Sec. However, Xian International is 1.14 times more volatile than Dongxing Sec Co. It trades about 0.05 of its potential returns per unit of risk. Dongxing Sec Co is currently generating about -0.07 per unit of risk. If you would invest 590.00 in Xian International Medical on September 15, 2024 and sell it today you would earn a total of 13.00 from holding Xian International Medical or generate 2.2% 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. Dongxing Sec Co
Performance |
| Timeline |
| Xian International |
| Dongxing Sec |
Xian International and Dongxing Sec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xian International and Dongxing Sec
The main advantage of trading using opposite Xian International and Dongxing Sec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xian International position performs unexpectedly, Dongxing Sec 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 Dongxing Sec will offset losses from the drop in Dongxing Sec's long position.| Xian International vs. Ming Yang Smart | Xian International vs. 159681 | Xian International vs. 159005 | Xian International vs. Loctek Ergonomic Technology |
| Dongxing Sec vs. Winner Medical Co | Dongxing Sec vs. Offshore Oil Engineering | Dongxing Sec vs. Maider Medical Industry | Dongxing Sec vs. Xian International 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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