Correlation Between Chison Medical and Xian International
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By analyzing existing cross correlation between Chison Medical Technologies and Xian International Medical, you can compare the effects of market volatilities on Chison Medical and Xian International 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 Chison Medical with a short position of Xian International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chison Medical and Xian International.
Diversification Opportunities for Chison Medical and Xian International
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Chison and Xian is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Chison Medical Technologies and Xian International Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xian International and Chison Medical 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 Chison Medical Technologies are associated (or correlated) with Xian International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xian International has no effect on the direction of Chison Medical i.e., Chison Medical and Xian International go up and down completely randomly.
Pair Corralation between Chison Medical and Xian International
Assuming the 90 days trading horizon Chison Medical is expected to generate 1.35 times less return on investment than Xian International. But when comparing it to its historical volatility, Chison Medical Technologies is 1.24 times less risky than Xian International. It trades about 0.18 of its potential returns per unit of risk. Xian International Medical is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 528.00 in Xian International Medical on September 2, 2024 and sell it today you would earn a total of 92.00 from holding Xian International Medical or generate 17.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chison Medical Technologies vs. Xian International Medical
Performance |
| Timeline |
| Chison Medical Techn |
| Xian International |
Chison Medical and Xian International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chison Medical and Xian International
The main advantage of trading using opposite Chison Medical and Xian International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chison Medical position performs unexpectedly, Xian International 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 Xian International will offset losses from the drop in Xian International's long position.| Chison Medical vs. Nanjing Putian Telecommunications | Chison Medical vs. Shenzhen Hifuture Electric | Chison Medical vs. Tianjin Realty Development | Chison Medical vs. Shenyang Huitian Thermal |
| Xian International vs. Dalian Zeus Entertainment | Xian International vs. Shenzhen Kexin Communication | Xian International vs. Threes Company Media | Xian International vs. Eastern Communications Co |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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