Correlation Between Chengdu Xinzhu and Sino Medical
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By analyzing existing cross correlation between Chengdu Xinzhu RoadBridge and Sino Medical Sciences, you can compare the effects of market volatilities on Chengdu Xinzhu and Sino 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 Chengdu Xinzhu with a short position of Sino Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Xinzhu and Sino Medical.
Diversification Opportunities for Chengdu Xinzhu and Sino Medical
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Chengdu and Sino is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Xinzhu RoadBridge and Sino Medical Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sino Medical Sciences and Chengdu Xinzhu 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 Chengdu Xinzhu RoadBridge are associated (or correlated) with Sino Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sino Medical Sciences has no effect on the direction of Chengdu Xinzhu i.e., Chengdu Xinzhu and Sino Medical go up and down completely randomly.
Pair Corralation between Chengdu Xinzhu and Sino Medical
Assuming the 90 days trading horizon Chengdu Xinzhu RoadBridge is expected to generate 0.72 times more return on investment than Sino Medical. However, Chengdu Xinzhu RoadBridge is 1.38 times less risky than Sino Medical. It trades about -0.06 of its potential returns per unit of risk. Sino Medical Sciences is currently generating about -0.13 per unit of risk. If you would invest 545.00 in Chengdu Xinzhu RoadBridge on January 26, 2025 and sell it today you would lose (26.00) from holding Chengdu Xinzhu RoadBridge or give up 4.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Xinzhu RoadBridge vs. Sino Medical Sciences
Performance |
| Timeline |
| Chengdu Xinzhu RoadBridge |
| Sino Medical Sciences |
Chengdu Xinzhu and Sino Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Xinzhu and Sino Medical
The main advantage of trading using opposite Chengdu Xinzhu and Sino Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Xinzhu position performs unexpectedly, Sino 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 Sino Medical will offset losses from the drop in Sino Medical's long position.| Chengdu Xinzhu vs. Guangxi Wuzhou Communications | Chengdu Xinzhu vs. Tongyu Communication | Chengdu Xinzhu vs. Hubeiyichang Transportation Group | Chengdu Xinzhu vs. SUNSEA Telecommunications Co |
| Sino Medical vs. Agricultural Bank of | Sino Medical vs. Industrial and Commercial | Sino Medical vs. Bank of China | Sino Medical vs. PetroChina Co Ltd |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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