Correlation Between Xiandai Investment and Hangzhou Minsheng
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xiandai Investment Co and Hangzhou Minsheng Healthcare, you can compare the effects of market volatilities on Xiandai Investment and Hangzhou Minsheng 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 Xiandai Investment with a short position of Hangzhou Minsheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiandai Investment and Hangzhou Minsheng.
Diversification Opportunities for Xiandai Investment and Hangzhou Minsheng
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xiandai and Hangzhou is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Xiandai Investment Co and Hangzhou Minsheng Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Minsheng and Xiandai Investment 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 Xiandai Investment Co are associated (or correlated) with Hangzhou Minsheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Minsheng has no effect on the direction of Xiandai Investment i.e., Xiandai Investment and Hangzhou Minsheng go up and down completely randomly.
Pair Corralation between Xiandai Investment and Hangzhou Minsheng
Assuming the 90 days trading horizon Xiandai Investment Co is expected to generate 0.44 times more return on investment than Hangzhou Minsheng. However, Xiandai Investment Co is 2.26 times less risky than Hangzhou Minsheng. It trades about 0.01 of its potential returns per unit of risk. Hangzhou Minsheng Healthcare is currently generating about -0.07 per unit of risk. If you would invest 410.00 in Xiandai Investment Co on October 25, 2024 and sell it today you would earn a total of 8.00 from holding Xiandai Investment Co or generate 1.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 69.71% |
| Values | Daily Returns |
Xiandai Investment Co vs. Hangzhou Minsheng Healthcare
Performance |
| Timeline |
| Xiandai Investment |
| Hangzhou Minsheng |
Xiandai Investment and Hangzhou Minsheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiandai Investment and Hangzhou Minsheng
The main advantage of trading using opposite Xiandai Investment and Hangzhou Minsheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiandai Investment position performs unexpectedly, Hangzhou Minsheng 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 Hangzhou Minsheng will offset losses from the drop in Hangzhou Minsheng's long position.| Xiandai Investment vs. PetroChina Co Ltd | Xiandai Investment vs. China Mobile Limited | Xiandai Investment vs. CNOOC Limited | Xiandai Investment vs. Ping An Insurance |
| Hangzhou Minsheng vs. Bingo Software Co | Hangzhou Minsheng vs. Linkage Software Co | Hangzhou Minsheng vs. Quectel Wireless Solutions | Hangzhou Minsheng vs. Spearhead Integrated Marketing |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |