Correlation Between Xinjiang Tianshun and Innovative Medical

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Can any of the company-specific risk be diversified away by investing in both Xinjiang Tianshun and Innovative Medical at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Xinjiang Tianshun and Innovative Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xinjiang Tianshun Supply and Innovative Medical Management, you can compare the effects of market volatilities on Xinjiang Tianshun and Innovative 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 Xinjiang Tianshun with a short position of Innovative Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Tianshun and Innovative Medical.

Diversification Opportunities for Xinjiang Tianshun and Innovative Medical

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  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Xinjiang and Innovative is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Tianshun Supply and Innovative Medical Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovative Medical and Xinjiang Tianshun 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 Xinjiang Tianshun Supply are associated (or correlated) with Innovative Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovative Medical has no effect on the direction of Xinjiang Tianshun i.e., Xinjiang Tianshun and Innovative Medical go up and down completely randomly.

Pair Corralation between Xinjiang Tianshun and Innovative Medical

If you would invest (100.00) in Xinjiang Tianshun Supply on September 6, 2024 and sell it today you would earn a total of  100.00  from holding Xinjiang Tianshun Supply or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Xinjiang Tianshun Supply  vs.  Innovative Medical Management

 Performance 
       Timeline  
Xinjiang Tianshun Supply 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Solid
Over the last 90 days Xinjiang Tianshun Supply has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Xinjiang Tianshun is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Innovative Medical 

Risk-Adjusted Performance

13 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Innovative Medical Management are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Innovative Medical sustained solid returns over the last few months and may actually be approaching a breakup point.

Xinjiang Tianshun and Innovative Medical Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Xinjiang Tianshun and Innovative Medical

The main advantage of trading using opposite Xinjiang Tianshun and Innovative Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Tianshun position performs unexpectedly, Innovative 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 Innovative Medical will offset losses from the drop in Innovative Medical's long position.
The idea behind Xinjiang Tianshun Supply and Innovative Medical Management pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.

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