Correlation Between Xiwang Special and GLOBUS MEDICAL
Can any of the company-specific risk be diversified away by investing in both Xiwang Special and GLOBUS 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 Xiwang Special and GLOBUS MEDICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xiwang Special Steel and GLOBUS MEDICAL A, you can compare the effects of market volatilities on Xiwang Special and GLOBUS 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 Xiwang Special with a short position of GLOBUS MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiwang Special and GLOBUS MEDICAL.
Diversification Opportunities for Xiwang Special and GLOBUS MEDICAL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xiwang and GLOBUS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Xiwang Special Steel and GLOBUS MEDICAL A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GLOBUS MEDICAL A and Xiwang Special 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 Xiwang Special Steel are associated (or correlated) with GLOBUS MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GLOBUS MEDICAL A has no effect on the direction of Xiwang Special i.e., Xiwang Special and GLOBUS MEDICAL go up and down completely randomly.
Pair Corralation between Xiwang Special and GLOBUS MEDICAL
Assuming the 90 days horizon Xiwang Special Steel is expected to generate 49.33 times more return on investment than GLOBUS MEDICAL. However, Xiwang Special is 49.33 times more volatile than GLOBUS MEDICAL A. It trades about 0.09 of its potential returns per unit of risk. GLOBUS MEDICAL A is currently generating about 0.03 per unit of risk. If you would invest 1.53 in Xiwang Special Steel on October 29, 2024 and sell it today you would lose (1.52) from holding Xiwang Special Steel or give up 99.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Xiwang Special Steel vs. GLOBUS MEDICAL A
Performance |
| Timeline |
| Xiwang Special Steel |
| GLOBUS MEDICAL A |
Xiwang Special and GLOBUS MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiwang Special and GLOBUS MEDICAL
The main advantage of trading using opposite Xiwang Special and GLOBUS MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiwang Special position performs unexpectedly, GLOBUS 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 GLOBUS MEDICAL will offset losses from the drop in GLOBUS MEDICAL's long position.| Xiwang Special vs. SOEDER SPORTFISKE AB | Xiwang Special vs. SPORT LISBOA E | Xiwang Special vs. COLUMBIA SPORTSWEAR | Xiwang Special vs. ANTA SPORTS PRODUCT |
| GLOBUS MEDICAL vs. PKSHA TECHNOLOGY INC | GLOBUS MEDICAL vs. Cognizant Technology Solutions | GLOBUS MEDICAL vs. Firan Technology Group | GLOBUS MEDICAL vs. DXC Technology 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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