Correlation Between Xinjiang Tianrun and Innovative Medical
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By analyzing existing cross correlation between Xinjiang Tianrun Dairy and Innovative Medical Management, you can compare the effects of market volatilities on Xinjiang Tianrun and Innovative 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 Xinjiang Tianrun with a short position of Innovative Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Tianrun and Innovative Medical.
Diversification Opportunities for Xinjiang Tianrun and Innovative Medical
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xinjiang and Innovative is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Tianrun Dairy and Innovative Medical Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovative Medical and Xinjiang Tianrun 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 Xinjiang Tianrun Dairy are associated (or correlated) with Innovative Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovative Medical has no effect on the direction of Xinjiang Tianrun i.e., Xinjiang Tianrun and Innovative Medical go up and down completely randomly.
Pair Corralation between Xinjiang Tianrun and Innovative Medical
Assuming the 90 days trading horizon Xinjiang Tianrun Dairy is expected to under-perform the Innovative Medical. But the stock apears to be less risky and, when comparing its historical volatility, Xinjiang Tianrun Dairy is 1.04 times less risky than Innovative Medical. The stock trades about -0.18 of its potential returns per unit of risk. The Innovative Medical Management is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 803.00 in Innovative Medical Management on November 3, 2024 and sell it today you would earn a total of 25.00 from holding Innovative Medical Management or generate 3.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Tianrun Dairy vs. Innovative Medical Management
Performance |
| Timeline |
| Xinjiang Tianrun Dairy |
| Innovative Medical |
Xinjiang Tianrun and Innovative Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Tianrun and Innovative Medical
The main advantage of trading using opposite Xinjiang Tianrun and Innovative Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Tianrun position performs unexpectedly, Innovative 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 Innovative Medical will offset losses from the drop in Innovative Medical's long position.| Xinjiang Tianrun vs. Chengtun Mining Group | Xinjiang Tianrun vs. Guangdong Silvere Sci | Xinjiang Tianrun vs. China Aluminum International | Xinjiang Tianrun vs. Chenzhou Jingui Silver |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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