Correlation Between Nanjing Medlander and Xingguang Agricultural
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By analyzing existing cross correlation between Nanjing Medlander Medical and Xingguang Agricultural Mach, you can compare the effects of market volatilities on Nanjing Medlander and Xingguang Agricultural 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 Xingguang Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Medlander and Xingguang Agricultural.
Diversification Opportunities for Nanjing Medlander and Xingguang Agricultural
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nanjing and Xingguang is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Medlander Medical and Xingguang Agricultural Mach in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xingguang Agricultural 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 Xingguang Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xingguang Agricultural has no effect on the direction of Nanjing Medlander i.e., Nanjing Medlander and Xingguang Agricultural go up and down completely randomly.
Pair Corralation between Nanjing Medlander and Xingguang Agricultural
Assuming the 90 days trading horizon Nanjing Medlander Medical is expected to under-perform the Xingguang Agricultural. But the stock apears to be less risky and, when comparing its historical volatility, Nanjing Medlander Medical is 1.32 times less risky than Xingguang Agricultural. The stock trades about -0.1 of its potential returns per unit of risk. The Xingguang Agricultural Mach is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 839.00 in Xingguang Agricultural Mach on August 29, 2024 and sell it today you would earn a total of 44.00 from holding Xingguang Agricultural Mach or generate 5.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Medlander Medical vs. Xingguang Agricultural Mach
Performance |
| Timeline |
| Nanjing Medlander Medical |
| Xingguang Agricultural |
Nanjing Medlander and Xingguang Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Medlander and Xingguang Agricultural
The main advantage of trading using opposite Nanjing Medlander and Xingguang Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Medlander position performs unexpectedly, Xingguang Agricultural 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 Xingguang Agricultural will offset losses from the drop in Xingguang Agricultural's long position.| Nanjing Medlander vs. Industrial and Commercial | Nanjing Medlander vs. China Construction Bank | Nanjing Medlander vs. Agricultural Bank of | Nanjing Medlander vs. Bank of China |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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