Correlation Between Xian International and Kunshan Guoli
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By analyzing existing cross correlation between Xian International Medical and Kunshan Guoli Electronic, you can compare the effects of market volatilities on Xian International and Kunshan Guoli 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 Kunshan Guoli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xian International and Kunshan Guoli.
Diversification Opportunities for Xian International and Kunshan Guoli
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xian and Kunshan is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Xian International Medical and Kunshan Guoli Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kunshan Guoli Electronic 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 Kunshan Guoli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kunshan Guoli Electronic has no effect on the direction of Xian International i.e., Xian International and Kunshan Guoli go up and down completely randomly.
Pair Corralation between Xian International and Kunshan Guoli
Assuming the 90 days trading horizon Xian International Medical is expected to generate 0.99 times more return on investment than Kunshan Guoli. However, Xian International Medical is 1.01 times less risky than Kunshan Guoli. It trades about 0.2 of its potential returns per unit of risk. Kunshan Guoli Electronic is currently generating about 0.04 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. Kunshan Guoli Electronic
Performance |
| Timeline |
| Xian International |
| Kunshan Guoli Electronic |
Xian International and Kunshan Guoli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xian International and Kunshan Guoli
The main advantage of trading using opposite Xian International and Kunshan Guoli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xian International position performs unexpectedly, Kunshan Guoli 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 Kunshan Guoli will offset losses from the drop in Kunshan Guoli'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 |
| Kunshan Guoli vs. HaiXin Foods Co | Kunshan Guoli vs. Guangdong Brandmax Marketing | Kunshan Guoli vs. Youyou Foods Co | Kunshan Guoli vs. Gan Yuan Foods |
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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