Correlation Between Innovative Medical and Xinjiang Communications
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By analyzing existing cross correlation between Innovative Medical Management and Xinjiang Communications Construction, you can compare the effects of market volatilities on Innovative Medical and Xinjiang Communications 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 Innovative Medical with a short position of Xinjiang Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innovative Medical and Xinjiang Communications.
Diversification Opportunities for Innovative Medical and Xinjiang Communications
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Innovative and Xinjiang is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Innovative Medical Management and Xinjiang Communications Constr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Communications and Innovative Medical 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 Innovative Medical Management are associated (or correlated) with Xinjiang Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Communications has no effect on the direction of Innovative Medical i.e., Innovative Medical and Xinjiang Communications go up and down completely randomly.
Pair Corralation between Innovative Medical and Xinjiang Communications
Assuming the 90 days trading horizon Innovative Medical Management is expected to under-perform the Xinjiang Communications. In addition to that, Innovative Medical is 2.64 times more volatile than Xinjiang Communications Construction. It trades about -0.06 of its total potential returns per unit of risk. Xinjiang Communications Construction is currently generating about 0.13 per unit of volatility. If you would invest 1,252 in Xinjiang Communications Construction on September 13, 2024 and sell it today you would earn a total of 56.00 from holding Xinjiang Communications Construction or generate 4.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Innovative Medical Management vs. Xinjiang Communications Constr
Performance |
| Timeline |
| Innovative Medical |
| Xinjiang Communications |
Innovative Medical and Xinjiang Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innovative Medical and Xinjiang Communications
The main advantage of trading using opposite Innovative Medical and Xinjiang Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innovative Medical position performs unexpectedly, Xinjiang Communications 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 Xinjiang Communications will offset losses from the drop in Xinjiang Communications' long position.| Innovative Medical vs. Nanjing Putian Telecommunications | Innovative Medical vs. Tianjin Realty Development | Innovative Medical vs. Kangyue Technology Co | Innovative Medical vs. Shenzhen Hifuture Electric |
| Xinjiang Communications vs. Industrial and Commercial | Xinjiang Communications vs. Kweichow Moutai Co | Xinjiang Communications vs. Agricultural Bank of | Xinjiang Communications vs. China Mobile Limited |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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