Correlation Between Xinya Electronic and Zhonghong Pulin
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xinya Electronic Co and Zhonghong Pulin Medical, you can compare the effects of market volatilities on Xinya Electronic 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 Xinya Electronic with a short position of Zhonghong Pulin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinya Electronic and Zhonghong Pulin.
Diversification Opportunities for Xinya Electronic and Zhonghong Pulin
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Xinya and Zhonghong is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Xinya Electronic Co 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 Xinya Electronic 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 Xinya Electronic Co 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 Xinya Electronic i.e., Xinya Electronic and Zhonghong Pulin go up and down completely randomly.
Pair Corralation between Xinya Electronic and Zhonghong Pulin
Assuming the 90 days trading horizon Xinya Electronic Co is expected to generate 2.61 times more return on investment than Zhonghong Pulin. However, Xinya Electronic is 2.61 times more volatile than Zhonghong Pulin Medical. It trades about 0.02 of its potential returns per unit of risk. Zhonghong Pulin Medical is currently generating about -0.19 per unit of risk. If you would invest 1,496 in Xinya Electronic Co on October 23, 2024 and sell it today you would earn a total of 2.00 from holding Xinya Electronic Co or generate 0.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Xinya Electronic Co vs. Zhonghong Pulin Medical
Performance |
| Timeline |
| Xinya Electronic |
| Zhonghong Pulin Medical |
Xinya Electronic and Zhonghong Pulin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinya Electronic and Zhonghong Pulin
The main advantage of trading using opposite Xinya Electronic and Zhonghong Pulin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinya Electronic 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.| Xinya Electronic vs. Jinling Hotel Corp | Xinya Electronic vs. Qingdao Foods Co | Xinya Electronic vs. Xiamen Jihong Package | Xinya Electronic vs. Zhongjing Food Co |
| Zhonghong Pulin vs. Threes Company Media | Zhonghong Pulin vs. Hainan Airlines Co | Zhonghong Pulin vs. Changjiang Publishing Media | Zhonghong Pulin vs. Beijing Enlight Media |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |