Correlation Between Xinjiang Baodi and Double Medical
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By analyzing existing cross correlation between Xinjiang Baodi Mining and Double Medical Technology, you can compare the effects of market volatilities on Xinjiang Baodi and Double 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 Baodi with a short position of Double Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and Double Medical.
Diversification Opportunities for Xinjiang Baodi and Double Medical
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Xinjiang and Double is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining and Double Medical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Double Medical Technology and Xinjiang Baodi 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 Baodi Mining are associated (or correlated) with Double Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Double Medical Technology has no effect on the direction of Xinjiang Baodi i.e., Xinjiang Baodi and Double Medical go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and Double Medical
Assuming the 90 days trading horizon Xinjiang Baodi Mining is expected to under-perform the Double Medical. In addition to that, Xinjiang Baodi is 1.08 times more volatile than Double Medical Technology. It trades about -0.08 of its total potential returns per unit of risk. Double Medical Technology is currently generating about 0.07 per unit of volatility. If you would invest 3,319 in Double Medical Technology on November 1, 2024 and sell it today you would earn a total of 193.00 from holding Double Medical Technology or generate 5.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Baodi Mining vs. Double Medical Technology
Performance |
| Timeline |
| Xinjiang Baodi Mining |
| Double Medical Technology |
Xinjiang Baodi and Double Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Baodi and Double Medical
The main advantage of trading using opposite Xinjiang Baodi and Double Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi position performs unexpectedly, Double 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 Double Medical will offset losses from the drop in Double Medical's long position.| Xinjiang Baodi vs. Xiangyang Automobile Bearing | Xinjiang Baodi vs. Fuzhou Rockchip Electronics | Xinjiang Baodi vs. Haima Automobile Group | Xinjiang Baodi vs. Sihui Fuji Electronics |
| Double Medical vs. Gem Year Industrial Co | Double Medical vs. Shanghai Material Trading | Double Medical vs. Xinjiang Baodi Mining | Double Medical vs. Zhejiang Construction Investment |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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