Correlation Between Zhonghong Pulin and Xinya Electronic
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By analyzing existing cross correlation between Zhonghong Pulin Medical and Xinya Electronic Co, you can compare the effects of market volatilities on Zhonghong Pulin and Xinya Electronic 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 Xinya Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhonghong Pulin and Xinya Electronic.
Diversification Opportunities for Zhonghong Pulin and Xinya Electronic
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zhonghong and Xinya is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Zhonghong Pulin Medical and Xinya Electronic Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinya Electronic 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 Xinya Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinya Electronic has no effect on the direction of Zhonghong Pulin i.e., Zhonghong Pulin and Xinya Electronic go up and down completely randomly.
Pair Corralation between Zhonghong Pulin and Xinya Electronic
Assuming the 90 days trading horizon Zhonghong Pulin Medical is expected to under-perform the Xinya Electronic. But the stock apears to be less risky and, when comparing its historical volatility, Zhonghong Pulin Medical is 2.61 times less risky than Xinya Electronic. The stock trades about -0.19 of its potential returns per unit of risk. The Xinya Electronic Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,496 in Xinya Electronic Co on October 23, 2024 and sell it today you would earn a total of 2.00 from holding Xinya Electronic Co or generate 0.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Zhonghong Pulin Medical vs. Xinya Electronic Co
Performance |
| Timeline |
| Zhonghong Pulin Medical |
| Xinya Electronic |
Zhonghong Pulin and Xinya Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhonghong Pulin and Xinya Electronic
The main advantage of trading using opposite Zhonghong Pulin and Xinya Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhonghong Pulin position performs unexpectedly, Xinya Electronic 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 Xinya Electronic will offset losses from the drop in Xinya Electronic's long position.| Zhonghong Pulin vs. Threes Company Media | Zhonghong Pulin vs. Hainan Airlines Co | Zhonghong Pulin vs. Changjiang Publishing Media | Zhonghong Pulin vs. Beijing Enlight Media |
| Xinya Electronic vs. Jinling Hotel Corp | Xinya Electronic vs. Qingdao Foods Co | Xinya Electronic vs. Xiamen Jihong Package | Xinya Electronic vs. Zhongjing Food 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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