Correlation Between Northking Information and Xiangyu Medical
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By analyzing existing cross correlation between Northking Information Technology and Xiangyu Medical Co, you can compare the effects of market volatilities on Northking Information and Xiangyu 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 Northking Information with a short position of Xiangyu Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northking Information and Xiangyu Medical.
Diversification Opportunities for Northking Information and Xiangyu Medical
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Northking and Xiangyu is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Northking Information Technolo and Xiangyu Medical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangyu Medical and Northking Information 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 Northking Information Technology are associated (or correlated) with Xiangyu Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiangyu Medical has no effect on the direction of Northking Information i.e., Northking Information and Xiangyu Medical go up and down completely randomly.
Pair Corralation between Northking Information and Xiangyu Medical
Assuming the 90 days trading horizon Northking Information Technology is expected to generate 0.98 times more return on investment than Xiangyu Medical. However, Northking Information Technology is 1.02 times less risky than Xiangyu Medical. It trades about 0.03 of its potential returns per unit of risk. Xiangyu Medical Co is currently generating about 0.02 per unit of risk. If you would invest 1,271 in Northking Information Technology on September 12, 2024 and sell it today you would earn a total of 287.00 from holding Northking Information Technology or generate 22.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Northking Information Technolo vs. Xiangyu Medical Co
Performance |
| Timeline |
| Northking Information |
| Xiangyu Medical |
Northking Information and Xiangyu Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northking Information and Xiangyu Medical
The main advantage of trading using opposite Northking Information and Xiangyu Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northking Information position performs unexpectedly, Xiangyu 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 Xiangyu Medical will offset losses from the drop in Xiangyu Medical's long position.| Northking Information vs. Gansu Jiu Steel | Northking Information vs. Shandong Mining Machinery | Northking Information vs. Aba Chemicals Corp | Northking Information vs. BlueFocus Communication Group |
| Xiangyu Medical vs. Cultural Investment Holdings | Xiangyu Medical vs. Gome Telecom Equipment | Xiangyu Medical vs. Holitech Technology Co | Xiangyu Medical vs. Zotye Automobile Co |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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