Correlation Between Excelsior Medical and Pan International
Can any of the company-specific risk be diversified away by investing in both Excelsior Medical and Pan International at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Excelsior Medical and Pan International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Excelsior Medical Co and Pan International Industrial Corp, you can compare the effects of market volatilities on Excelsior Medical and Pan International 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 Excelsior Medical with a short position of Pan International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Excelsior Medical and Pan International.
Diversification Opportunities for Excelsior Medical and Pan International
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Excelsior and Pan is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Excelsior Medical Co and Pan International Industrial C in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pan International and Excelsior Medical 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 Excelsior Medical Co are associated (or correlated) with Pan International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pan International has no effect on the direction of Excelsior Medical i.e., Excelsior Medical and Pan International go up and down completely randomly.
Pair Corralation between Excelsior Medical and Pan International
Assuming the 90 days trading horizon Excelsior Medical is expected to generate 8.42 times less return on investment than Pan International. But when comparing it to its historical volatility, Excelsior Medical Co is 2.51 times less risky than Pan International. It trades about 0.01 of its potential returns per unit of risk. Pan International Industrial Corp is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 3,540 in Pan International Industrial Corp on September 14, 2024 and sell it today you would earn a total of 325.00 from holding Pan International Industrial Corp or generate 9.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Excelsior Medical Co vs. Pan International Industrial C
Performance |
| Timeline |
| Excelsior Medical |
| Pan International |
Excelsior Medical and Pan International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Excelsior Medical and Pan International
The main advantage of trading using opposite Excelsior Medical and Pan International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Excelsior Medical position performs unexpectedly, Pan International 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 Pan International will offset losses from the drop in Pan International's long position.| Excelsior Medical vs. Wellell | Excelsior Medical vs. YungShin Global Holding | Excelsior Medical vs. Abnova Taiwan Corp | Excelsior Medical vs. Phytohealth Corp |
| Pan International vs. Ching Feng Home | Pan International vs. Excelsior Medical Co | Pan International vs. Standard Foods Corp | Pan International vs. Adata Technology 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |