Correlation Between Xiangyu Medical and Western Metal
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xiangyu Medical Co and Western Metal Materials, you can compare the effects of market volatilities on Xiangyu Medical and Western Metal 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 Western Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyu Medical and Western Metal.
Diversification Opportunities for Xiangyu Medical and Western Metal
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xiangyu and Western is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyu Medical Co and Western Metal Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Metal Materials 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 Western Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Metal Materials has no effect on the direction of Xiangyu Medical i.e., Xiangyu Medical and Western Metal go up and down completely randomly.
Pair Corralation between Xiangyu Medical and Western Metal
Assuming the 90 days trading horizon Xiangyu Medical Co is expected to generate 1.34 times more return on investment than Western Metal. However, Xiangyu Medical is 1.34 times more volatile than Western Metal Materials. It trades about 0.14 of its potential returns per unit of risk. Western Metal Materials is currently generating about 0.04 per unit of risk. If you would invest 2,800 in Xiangyu Medical Co on August 31, 2024 and sell it today you would earn a total of 372.00 from holding Xiangyu Medical Co or generate 13.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiangyu Medical Co vs. Western Metal Materials
Performance |
| Timeline |
| Xiangyu Medical |
| Western Metal Materials |
Xiangyu Medical and Western Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangyu Medical and Western Metal
The main advantage of trading using opposite Xiangyu Medical and Western Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyu Medical position performs unexpectedly, Western Metal 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 Western Metal will offset losses from the drop in Western Metal's long position.| Xiangyu Medical vs. PetroChina Co Ltd | Xiangyu Medical vs. China Mobile Limited | Xiangyu Medical vs. Ping An Insurance | Xiangyu Medical vs. China Petroleum Chemical |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |