Correlation Between Kunshan Guoli and Xiangyu Medical
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By analyzing existing cross correlation between Kunshan Guoli Electronic and Xiangyu Medical Co, you can compare the effects of market volatilities on Kunshan Guoli 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 Kunshan Guoli with a short position of Xiangyu Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunshan Guoli and Xiangyu Medical.
Diversification Opportunities for Kunshan Guoli and Xiangyu Medical
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kunshan and Xiangyu is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Kunshan Guoli Electronic and Xiangyu Medical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangyu Medical and Kunshan Guoli 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 Kunshan Guoli 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 Kunshan Guoli i.e., Kunshan Guoli and Xiangyu Medical go up and down completely randomly.
Pair Corralation between Kunshan Guoli and Xiangyu Medical
Assuming the 90 days trading horizon Kunshan Guoli is expected to generate 5.47 times less return on investment than Xiangyu Medical. But when comparing it to its historical volatility, Kunshan Guoli Electronic is 1.12 times less risky than Xiangyu Medical. It trades about 0.04 of its potential returns per unit of risk. Xiangyu Medical Co is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 2,728 in Xiangyu Medical Co on September 2, 2024 and sell it today you would earn a total of 444.00 from holding Xiangyu Medical Co or generate 16.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kunshan Guoli Electronic vs. Xiangyu Medical Co
Performance |
| Timeline |
| Kunshan Guoli Electronic |
| Xiangyu Medical |
Kunshan Guoli and Xiangyu Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kunshan Guoli and Xiangyu Medical
The main advantage of trading using opposite Kunshan Guoli and Xiangyu Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunshan Guoli 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.| Kunshan Guoli vs. HaiXin Foods Co | Kunshan Guoli vs. Guangdong Brandmax Marketing | Kunshan Guoli vs. Youyou Foods Co | Kunshan Guoli vs. Gan Yuan Foods |
| Xiangyu Medical vs. Nanjing Putian Telecommunications | Xiangyu Medical vs. Shenzhen Hifuture Electric | Xiangyu Medical vs. Tianjin Realty Development | Xiangyu Medical vs. Shenyang Huitian Thermal |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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