Correlation Between Xizi Clean and Nanjing Medlander
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By analyzing existing cross correlation between Xizi Clean Energy and Nanjing Medlander Medical, you can compare the effects of market volatilities on Xizi Clean and Nanjing Medlander 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 Xizi Clean with a short position of Nanjing Medlander. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xizi Clean and Nanjing Medlander.
Diversification Opportunities for Xizi Clean and Nanjing Medlander
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xizi and Nanjing is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Xizi Clean Energy and Nanjing Medlander Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing Medlander Medical and Xizi Clean 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 Xizi Clean Energy are associated (or correlated) with Nanjing Medlander. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing Medlander Medical has no effect on the direction of Xizi Clean i.e., Xizi Clean and Nanjing Medlander go up and down completely randomly.
Pair Corralation between Xizi Clean and Nanjing Medlander
Assuming the 90 days trading horizon Xizi Clean Energy is expected to under-perform the Nanjing Medlander. But the stock apears to be less risky and, when comparing its historical volatility, Xizi Clean Energy is 1.17 times less risky than Nanjing Medlander. The stock trades about -0.08 of its potential returns per unit of risk. The Nanjing Medlander Medical is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 2,673 in Nanjing Medlander Medical on September 13, 2024 and sell it today you would lose (68.00) from holding Nanjing Medlander Medical or give up 2.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xizi Clean Energy vs. Nanjing Medlander Medical
Performance |
| Timeline |
| Xizi Clean Energy |
| Nanjing Medlander Medical |
Xizi Clean and Nanjing Medlander Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xizi Clean and Nanjing Medlander
The main advantage of trading using opposite Xizi Clean and Nanjing Medlander positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xizi Clean position performs unexpectedly, Nanjing Medlander 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 Nanjing Medlander will offset losses from the drop in Nanjing Medlander's long position.| Xizi Clean vs. Industrial and Commercial | Xizi Clean vs. Kweichow Moutai Co | Xizi Clean vs. Agricultural Bank of | Xizi Clean vs. China Mobile Limited |
| Nanjing Medlander vs. Industrial and Commercial | Nanjing Medlander vs. Kweichow Moutai Co | Nanjing Medlander vs. Agricultural Bank of | Nanjing Medlander 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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