Correlation Between Wuxi Xuelang and Joincare Pharmaceutical
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By analyzing existing cross correlation between Wuxi Xuelang Environmental and Joincare Pharmaceutical Group, you can compare the effects of market volatilities on Wuxi Xuelang and Joincare Pharmaceutical 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 Wuxi Xuelang with a short position of Joincare Pharmaceutical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuxi Xuelang and Joincare Pharmaceutical.
Diversification Opportunities for Wuxi Xuelang and Joincare Pharmaceutical
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wuxi and Joincare is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Wuxi Xuelang Environmental and Joincare Pharmaceutical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Joincare Pharmaceutical and Wuxi Xuelang 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 Wuxi Xuelang Environmental are associated (or correlated) with Joincare Pharmaceutical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Joincare Pharmaceutical has no effect on the direction of Wuxi Xuelang i.e., Wuxi Xuelang and Joincare Pharmaceutical go up and down completely randomly.
Pair Corralation between Wuxi Xuelang and Joincare Pharmaceutical
Assuming the 90 days trading horizon Wuxi Xuelang Environmental is expected to under-perform the Joincare Pharmaceutical. In addition to that, Wuxi Xuelang is 2.02 times more volatile than Joincare Pharmaceutical Group. It trades about -0.08 of its total potential returns per unit of risk. Joincare Pharmaceutical Group is currently generating about -0.12 per unit of volatility. If you would invest 1,118 in Joincare Pharmaceutical Group on October 24, 2024 and sell it today you would lose (39.00) from holding Joincare Pharmaceutical Group or give up 3.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuxi Xuelang Environmental vs. Joincare Pharmaceutical Group
Performance |
| Timeline |
| Wuxi Xuelang Environ |
| Joincare Pharmaceutical |
Wuxi Xuelang and Joincare Pharmaceutical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuxi Xuelang and Joincare Pharmaceutical
The main advantage of trading using opposite Wuxi Xuelang and Joincare Pharmaceutical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuxi Xuelang position performs unexpectedly, Joincare Pharmaceutical 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 Joincare Pharmaceutical will offset losses from the drop in Joincare Pharmaceutical's long position.| Wuxi Xuelang vs. Quectel Wireless Solutions | Wuxi Xuelang vs. Zotye Automobile Co | Wuxi Xuelang vs. Youyou Foods Co | Wuxi Xuelang vs. Bomesc Offshore Engineering |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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