Correlation Between Zhonghong Pulin and Xinke Material
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhonghong Pulin Medical and Xinke Material, you can compare the effects of market volatilities on Zhonghong Pulin and Xinke Material 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 Zhonghong Pulin with a short position of Xinke Material. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhonghong Pulin and Xinke Material.
Diversification Opportunities for Zhonghong Pulin and Xinke Material
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zhonghong and Xinke is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Zhonghong Pulin Medical and Xinke Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinke Material and Zhonghong Pulin 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 Zhonghong Pulin Medical are associated (or correlated) with Xinke Material. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinke Material has no effect on the direction of Zhonghong Pulin i.e., Zhonghong Pulin and Xinke Material go up and down completely randomly.
Pair Corralation between Zhonghong Pulin and Xinke Material
Assuming the 90 days trading horizon Zhonghong Pulin Medical is expected to under-perform the Xinke Material. But the stock apears to be less risky and, when comparing its historical volatility, Zhonghong Pulin Medical is 1.02 times less risky than Xinke Material. The stock trades about -0.01 of its potential returns per unit of risk. The Xinke Material is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 247.00 in Xinke Material on November 3, 2024 and sell it today you would earn a total of 152.00 from holding Xinke Material or generate 61.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhonghong Pulin Medical vs. Xinke Material
Performance |
| Timeline |
| Zhonghong Pulin Medical |
| Xinke Material |
Zhonghong Pulin and Xinke Material Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhonghong Pulin and Xinke Material
The main advantage of trading using opposite Zhonghong Pulin and Xinke Material positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhonghong Pulin position performs unexpectedly, Xinke Material 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 Xinke Material will offset losses from the drop in Xinke Material's long position.| Zhonghong Pulin vs. Shandong Rike Chemical | Zhonghong Pulin vs. Xinjiang Communications Construction | Zhonghong Pulin vs. Nantong JiangTian Chemical | Zhonghong Pulin vs. Liaoning Dingjide Petrochemical |
| Xinke Material vs. GigaDevice SemiconductorBeiji | Xinke Material vs. Offshore Oil Engineering | Xinke Material vs. Hua Hong Semiconductor | Xinke Material vs. StarPower Semiconductor |
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..
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |