Correlation Between Guangdong Wens and Xiangyu Medical
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By analyzing existing cross correlation between Guangdong Wens Foodstuff and Xiangyu Medical Co, you can compare the effects of market volatilities on Guangdong Wens 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 Guangdong Wens with a short position of Xiangyu Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Wens and Xiangyu Medical.
Diversification Opportunities for Guangdong Wens and Xiangyu Medical
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and Xiangyu is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Wens Foodstuff and Xiangyu Medical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangyu Medical and Guangdong Wens 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 Guangdong Wens Foodstuff 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 Guangdong Wens i.e., Guangdong Wens and Xiangyu Medical go up and down completely randomly.
Pair Corralation between Guangdong Wens and Xiangyu Medical
Assuming the 90 days trading horizon Guangdong Wens Foodstuff is expected to under-perform the Xiangyu Medical. But the stock apears to be less risky and, when comparing its historical volatility, Guangdong Wens Foodstuff is 2.9 times less risky than Xiangyu Medical. The stock trades about -0.19 of its potential returns per unit of risk. The Xiangyu Medical Co is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 2,883 in Xiangyu Medical Co on September 3, 2024 and sell it today you would earn a total of 289.00 from holding Xiangyu Medical Co or generate 10.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Wens Foodstuff vs. Xiangyu Medical Co
Performance |
| Timeline |
| Guangdong Wens Foodstuff |
| Xiangyu Medical |
Guangdong Wens and Xiangyu Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Wens and Xiangyu Medical
The main advantage of trading using opposite Guangdong Wens and Xiangyu Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Wens 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.| Guangdong Wens vs. Beijing Wantai Biological | Guangdong Wens vs. Aluminum Corp of | Guangdong Wens vs. COL Digital Publishing | Guangdong Wens vs. Shaanxi Meineng Clean |
| 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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