Correlation Between Ningbo David and Xiangyu Medical
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By analyzing existing cross correlation between Ningbo David Medical and Xiangyu Medical Co, you can compare the effects of market volatilities on Ningbo David 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 Ningbo David with a short position of Xiangyu Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo David and Xiangyu Medical.
Diversification Opportunities for Ningbo David and Xiangyu Medical
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ningbo and Xiangyu is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo David Medical and Xiangyu Medical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangyu Medical and Ningbo David 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 Ningbo David Medical 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 Ningbo David i.e., Ningbo David and Xiangyu Medical go up and down completely randomly.
Pair Corralation between Ningbo David and Xiangyu Medical
Assuming the 90 days trading horizon Ningbo David is expected to generate 1.36 times less return on investment than Xiangyu Medical. In addition to that, Ningbo David is 1.06 times more volatile than Xiangyu Medical Co. It trades about 0.01 of its total potential returns per unit of risk. Xiangyu Medical Co is currently generating about 0.02 per unit of volatility. If you would invest 3,149 in Xiangyu Medical Co on September 3, 2024 and sell it today you would earn a total of 63.00 from holding Xiangyu Medical Co or generate 2.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo David Medical vs. Xiangyu Medical Co
Performance |
| Timeline |
| Ningbo David Medical |
| Xiangyu Medical |
Ningbo David and Xiangyu Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo David and Xiangyu Medical
The main advantage of trading using opposite Ningbo David and Xiangyu Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo David 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.| Ningbo David vs. GRINM Semiconductor Materials | Ningbo David vs. Eastroc Beverage Group | Ningbo David vs. Penyao Environmental Protection | Ningbo David vs. Orinko Advanced Plastics |
| Xiangyu Medical vs. Hainan Mining Co | Xiangyu Medical vs. Western Mining Co | Xiangyu Medical vs. Zhejiang Kingland Pipeline | Xiangyu Medical vs. Jiangsu Yueda 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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