Correlation Between Xiangyu Medical and Zhejiang Qianjiang
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By analyzing existing cross correlation between Xiangyu Medical Co and Zhejiang Qianjiang Motorcycle, you can compare the effects of market volatilities on Xiangyu Medical and Zhejiang Qianjiang 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 Xiangyu Medical with a short position of Zhejiang Qianjiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyu Medical and Zhejiang Qianjiang.
Diversification Opportunities for Xiangyu Medical and Zhejiang Qianjiang
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiangyu and Zhejiang is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyu Medical Co and Zhejiang Qianjiang Motorcycle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Qianjiang and Xiangyu 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 Xiangyu Medical Co are associated (or correlated) with Zhejiang Qianjiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Qianjiang has no effect on the direction of Xiangyu Medical i.e., Xiangyu Medical and Zhejiang Qianjiang go up and down completely randomly.
Pair Corralation between Xiangyu Medical and Zhejiang Qianjiang
Assuming the 90 days trading horizon Xiangyu Medical Co is expected to generate 1.7 times more return on investment than Zhejiang Qianjiang. However, Xiangyu Medical is 1.7 times more volatile than Zhejiang Qianjiang Motorcycle. It trades about 0.04 of its potential returns per unit of risk. Zhejiang Qianjiang Motorcycle is currently generating about -0.21 per unit of risk. If you would invest 3,379 in Xiangyu Medical Co on September 13, 2024 and sell it today you would earn a total of 59.00 from holding Xiangyu Medical Co or generate 1.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiangyu Medical Co vs. Zhejiang Qianjiang Motorcycle
Performance |
| Timeline |
| Xiangyu Medical |
| Zhejiang Qianjiang |
Xiangyu Medical and Zhejiang Qianjiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangyu Medical and Zhejiang Qianjiang
The main advantage of trading using opposite Xiangyu Medical and Zhejiang Qianjiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyu Medical position performs unexpectedly, Zhejiang Qianjiang 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 Zhejiang Qianjiang will offset losses from the drop in Zhejiang Qianjiang's long position.| Xiangyu Medical vs. Industrial and Commercial | Xiangyu Medical vs. Kweichow Moutai Co | Xiangyu Medical vs. Agricultural Bank of | Xiangyu Medical vs. China Mobile Limited |
| Zhejiang Qianjiang vs. Xiangyu Medical Co | Zhejiang Qianjiang vs. Shenzhen Silver Basis | Zhejiang Qianjiang vs. Cowealth Medical China | Zhejiang Qianjiang vs. Shenzhen Noposion Agrochemicals |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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