Correlation Between Zhongshan Public and Xiangyu Medical
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By analyzing existing cross correlation between Zhongshan Public Utilities and Xiangyu Medical Co, you can compare the effects of market volatilities on Zhongshan Public and Xiangyu Medical 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 Zhongshan Public with a short position of Xiangyu Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongshan Public and Xiangyu Medical.
Diversification Opportunities for Zhongshan Public and Xiangyu Medical
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhongshan and Xiangyu is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Zhongshan Public Utilities and Xiangyu Medical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangyu Medical and Zhongshan Public 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 Zhongshan Public Utilities are associated (or correlated) with Xiangyu Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiangyu Medical has no effect on the direction of Zhongshan Public i.e., Zhongshan Public and Xiangyu Medical go up and down completely randomly.
Pair Corralation between Zhongshan Public and Xiangyu Medical
Assuming the 90 days trading horizon Zhongshan Public Utilities is expected to generate 0.55 times more return on investment than Xiangyu Medical. However, Zhongshan Public Utilities is 1.82 times less risky than Xiangyu Medical. It trades about 0.09 of its potential returns per unit of risk. Xiangyu Medical Co is currently generating about 0.0 per unit of risk. If you would invest 724.00 in Zhongshan Public Utilities on September 1, 2024 and sell it today you would earn a total of 167.00 from holding Zhongshan Public Utilities or generate 23.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongshan Public Utilities vs. Xiangyu Medical Co
Performance |
| Timeline |
| Zhongshan Public Uti |
| Xiangyu Medical |
Zhongshan Public and Xiangyu Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongshan Public and Xiangyu Medical
The main advantage of trading using opposite Zhongshan Public and Xiangyu Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongshan Public position performs unexpectedly, Xiangyu Medical 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 Xiangyu Medical will offset losses from the drop in Xiangyu Medical's long position.| Zhongshan Public vs. Anhui Fuhuang Steel | Zhongshan Public vs. Gansu Jiu Steel | Zhongshan Public vs. Fujian Nanwang Environment | Zhongshan Public vs. Yindu Kitchen Equipment |
| Xiangyu Medical vs. Nanjing Putian Telecommunications | Xiangyu Medical vs. Shenzhen Hifuture Electric | Xiangyu Medical vs. Tianjin Realty Development | Xiangyu Medical vs. Shenyang Huitian Thermal |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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