Correlation Between Nanjing Medlander and Xizi Clean
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By analyzing existing cross correlation between Nanjing Medlander Medical and Xizi Clean Energy, you can compare the effects of market volatilities on Nanjing Medlander and Xizi Clean 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 Nanjing Medlander with a short position of Xizi Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Medlander and Xizi Clean.
Diversification Opportunities for Nanjing Medlander and Xizi Clean
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Nanjing and Xizi is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Medlander Medical and Xizi Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xizi Clean Energy and Nanjing Medlander 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 Nanjing Medlander Medical are associated (or correlated) with Xizi Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xizi Clean Energy has no effect on the direction of Nanjing Medlander i.e., Nanjing Medlander and Xizi Clean go up and down completely randomly.
Pair Corralation between Nanjing Medlander and Xizi Clean
Assuming the 90 days trading horizon Nanjing Medlander Medical is expected to generate 1.17 times more return on investment than Xizi Clean. However, Nanjing Medlander is 1.17 times more volatile than Xizi Clean Energy. It trades about -0.04 of its potential returns per unit of risk. Xizi Clean Energy is currently generating about -0.08 per unit of risk. If you would invest 2,673 in Nanjing Medlander Medical on September 13, 2024 and sell it today you would lose (68.00) from holding Nanjing Medlander Medical or give up 2.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Medlander Medical vs. Xizi Clean Energy
Performance |
| Timeline |
| Nanjing Medlander Medical |
| Xizi Clean Energy |
Nanjing Medlander and Xizi Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Medlander and Xizi Clean
The main advantage of trading using opposite Nanjing Medlander and Xizi Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Medlander position performs unexpectedly, Xizi Clean 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 Xizi Clean will offset losses from the drop in Xizi Clean's long position.| Nanjing Medlander vs. Industrial and Commercial | Nanjing Medlander vs. Kweichow Moutai Co | Nanjing Medlander vs. Agricultural Bank of | Nanjing Medlander vs. China Mobile Limited |
| Xizi Clean vs. Industrial and Commercial | Xizi Clean vs. Kweichow Moutai Co | Xizi Clean vs. Agricultural Bank of | Xizi Clean vs. China Mobile Limited |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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