Correlation Between Jiangxi Lianchuang and Xiangyu Medical
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By analyzing existing cross correlation between Jiangxi Lianchuang Opto electronic and Xiangyu Medical Co, you can compare the effects of market volatilities on Jiangxi Lianchuang 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 Jiangxi Lianchuang with a short position of Xiangyu Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Lianchuang and Xiangyu Medical.
Diversification Opportunities for Jiangxi Lianchuang and Xiangyu Medical
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiangxi and Xiangyu is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Lianchuang Opto electr and Xiangyu Medical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangyu Medical and Jiangxi Lianchuang 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 Jiangxi Lianchuang Opto electronic 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 Jiangxi Lianchuang i.e., Jiangxi Lianchuang and Xiangyu Medical go up and down completely randomly.
Pair Corralation between Jiangxi Lianchuang and Xiangyu Medical
Assuming the 90 days trading horizon Jiangxi Lianchuang Opto electronic is expected to generate 0.98 times more return on investment than Xiangyu Medical. However, Jiangxi Lianchuang Opto electronic is 1.02 times less risky than Xiangyu Medical. It trades about 0.05 of its potential returns per unit of risk. Xiangyu Medical Co is currently generating about 0.01 per unit of risk. If you would invest 2,596 in Jiangxi Lianchuang Opto electronic on October 20, 2024 and sell it today you would earn a total of 1,998 from holding Jiangxi Lianchuang Opto electronic or generate 76.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Lianchuang Opto electr vs. Xiangyu Medical Co
Performance |
| Timeline |
| Jiangxi Lianchuang Opto |
| Xiangyu Medical |
Jiangxi Lianchuang and Xiangyu Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Lianchuang and Xiangyu Medical
The main advantage of trading using opposite Jiangxi Lianchuang and Xiangyu Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Lianchuang 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.| Jiangxi Lianchuang vs. Haima Automobile Group | Jiangxi Lianchuang vs. Hangzhou Gisway Information | Jiangxi Lianchuang vs. Anhui Jianghuai Automobile | Jiangxi Lianchuang vs. Longmaster Information Tech |
| Xiangyu Medical vs. Shandong Hongchuang Aluminum | Xiangyu Medical vs. Jiangxi Lianchuang Opto electronic | Xiangyu Medical vs. Sino Platinum Metals Co | Xiangyu Medical vs. Success Electronics |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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