Correlation Between Xinke Material and Zhonghong Pulin
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By analyzing existing cross correlation between Xinke Material and Zhonghong Pulin Medical, you can compare the effects of market volatilities on Xinke Material and Zhonghong Pulin 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 Xinke Material with a short position of Zhonghong Pulin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinke Material and Zhonghong Pulin.
Diversification Opportunities for Xinke Material and Zhonghong Pulin
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xinke and Zhonghong is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Xinke Material and Zhonghong Pulin Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhonghong Pulin Medical and Xinke Material 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 Xinke Material are associated (or correlated) with Zhonghong Pulin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhonghong Pulin Medical has no effect on the direction of Xinke Material i.e., Xinke Material and Zhonghong Pulin go up and down completely randomly.
Pair Corralation between Xinke Material and Zhonghong Pulin
Assuming the 90 days trading horizon Xinke Material is expected to generate 3.35 times more return on investment than Zhonghong Pulin. However, Xinke Material is 3.35 times more volatile than Zhonghong Pulin Medical. It trades about 0.08 of its potential returns per unit of risk. Zhonghong Pulin Medical is currently generating about -0.16 per unit of risk. If you would invest 376.00 in Xinke Material on November 3, 2024 and sell it today you would earn a total of 23.00 from holding Xinke Material or generate 6.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinke Material vs. Zhonghong Pulin Medical
Performance |
| Timeline |
| Xinke Material |
| Zhonghong Pulin Medical |
Xinke Material and Zhonghong Pulin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinke Material and Zhonghong Pulin
The main advantage of trading using opposite Xinke Material and Zhonghong Pulin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinke Material position performs unexpectedly, Zhonghong Pulin 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 Zhonghong Pulin will offset losses from the drop in Zhonghong Pulin's long position.| Xinke Material vs. GigaDevice SemiconductorBeiji | Xinke Material vs. Offshore Oil Engineering | Xinke Material vs. Hua Hong Semiconductor | Xinke Material vs. StarPower Semiconductor |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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