Correlation Between Do Fluoride and Xian International
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By analyzing existing cross correlation between Do Fluoride Chemicals Co and Xian International Medical, you can compare the effects of market volatilities on Do Fluoride and Xian International 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 Do Fluoride with a short position of Xian International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Do Fluoride and Xian International.
Diversification Opportunities for Do Fluoride and Xian International
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 002407 and Xian is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Do Fluoride Chemicals Co and Xian International Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xian International and Do Fluoride 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 Do Fluoride Chemicals Co are associated (or correlated) with Xian International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xian International has no effect on the direction of Do Fluoride i.e., Do Fluoride and Xian International go up and down completely randomly.
Pair Corralation between Do Fluoride and Xian International
Assuming the 90 days trading horizon Do Fluoride Chemicals Co is expected to generate 1.04 times more return on investment than Xian International. However, Do Fluoride is 1.04 times more volatile than Xian International Medical. It trades about 0.0 of its potential returns per unit of risk. Xian International Medical is currently generating about -0.04 per unit of risk. If you would invest 1,260 in Do Fluoride Chemicals Co on October 18, 2024 and sell it today you would lose (106.00) from holding Do Fluoride Chemicals Co or give up 8.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Do Fluoride Chemicals Co vs. Xian International Medical
Performance |
| Timeline |
| Do Fluoride Chemicals |
| Xian International |
Do Fluoride and Xian International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Do Fluoride and Xian International
The main advantage of trading using opposite Do Fluoride and Xian International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Do Fluoride position performs unexpectedly, Xian International 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 Xian International will offset losses from the drop in Xian International's long position.| Do Fluoride vs. East Money Information | Do Fluoride vs. GRINM Semiconductor Materials | Do Fluoride vs. Thinkon Semiconductor Jinzhou | Do Fluoride vs. Suzhou Oriental Semiconductor |
| Xian International vs. Jahen Household Products | Xian International vs. State Grid InformationCommunication | Xian International vs. Tongyu Communication | Xian International vs. Queclink Wireless Solutions |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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