Correlation Between Allgens Medical and Xinjiang Communications
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By analyzing existing cross correlation between Allgens Medical Technology and Xinjiang Communications Construction, you can compare the effects of market volatilities on Allgens Medical and Xinjiang Communications 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 Allgens Medical with a short position of Xinjiang Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allgens Medical and Xinjiang Communications.
Diversification Opportunities for Allgens Medical and Xinjiang Communications
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Allgens and Xinjiang is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Allgens Medical Technology and Xinjiang Communications Constr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Communications and Allgens 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 Allgens Medical Technology are associated (or correlated) with Xinjiang Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Communications has no effect on the direction of Allgens Medical i.e., Allgens Medical and Xinjiang Communications go up and down completely randomly.
Pair Corralation between Allgens Medical and Xinjiang Communications
Assuming the 90 days trading horizon Allgens Medical Technology is expected to under-perform the Xinjiang Communications. But the stock apears to be less risky and, when comparing its historical volatility, Allgens Medical Technology is 1.15 times less risky than Xinjiang Communications. The stock trades about -0.38 of its potential returns per unit of risk. The Xinjiang Communications Construction is currently generating about -0.18 of returns per unit of risk over similar time horizon. If you would invest 1,150 in Xinjiang Communications Construction on October 30, 2024 and sell it today you would lose (77.00) from holding Xinjiang Communications Construction or give up 6.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allgens Medical Technology vs. Xinjiang Communications Constr
Performance |
| Timeline |
| Allgens Medical Tech |
| Xinjiang Communications |
Allgens Medical and Xinjiang Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allgens Medical and Xinjiang Communications
The main advantage of trading using opposite Allgens Medical and Xinjiang Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allgens Medical position performs unexpectedly, Xinjiang Communications 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 Xinjiang Communications will offset losses from the drop in Xinjiang Communications' long position.| Allgens Medical vs. Xiangyang Automobile Bearing | Allgens Medical vs. Guangdong Jingyi Metal | Allgens Medical vs. Chengtun Mining Group | Allgens Medical vs. Nanjing Putian Telecommunications |
| Xinjiang Communications vs. PetroChina Co Ltd | Xinjiang Communications vs. China Mobile Limited | Xinjiang Communications vs. CNOOC Limited | Xinjiang Communications vs. Ping An Insurance |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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