Correlation Between Innovative Medical and Xinke Material
Specify exactly 2 symbols:
By analyzing existing cross correlation between Innovative Medical Management and Xinke Material, you can compare the effects of market volatilities on Innovative Medical and Xinke Material 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 Xinke Material. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innovative Medical and Xinke Material.
Diversification Opportunities for Innovative Medical and Xinke Material
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Innovative and Xinke is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Innovative Medical Management and Xinke Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinke Material 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 Xinke Material. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinke Material has no effect on the direction of Innovative Medical i.e., Innovative Medical and Xinke Material go up and down completely randomly.
Pair Corralation between Innovative Medical and Xinke Material
Assuming the 90 days trading horizon Innovative Medical Management is expected to under-perform the Xinke Material. But the stock apears to be less risky and, when comparing its historical volatility, Innovative Medical Management is 1.59 times less risky than Xinke Material. The stock trades about -0.15 of its potential returns per unit of risk. The Xinke Material is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 371.00 in Xinke Material on October 23, 2024 and sell it today you would lose (7.00) from holding Xinke Material or give up 1.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Innovative Medical Management vs. Xinke Material
Performance |
| Timeline |
| Innovative Medical |
| Xinke Material |
Innovative Medical and Xinke Material Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innovative Medical and Xinke Material
The main advantage of trading using opposite Innovative Medical and Xinke Material positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innovative Medical position performs unexpectedly, Xinke Material 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 Xinke Material will offset losses from the drop in Xinke Material's long position.| Innovative Medical vs. Lotus Health Group | Innovative Medical vs. Meinian Onehealth Healthcare | Innovative Medical vs. Linewell Software Co | Innovative Medical vs. Fujian Boss Software |
| Xinke Material vs. Zhonghong Pulin Medical | Xinke Material vs. Winner Medical Co | Xinke Material vs. Xinya Electronic Co | Xinke Material vs. Innovative Medical Management |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| CEOs Directory Screen CEOs from public companies around the world |