Correlation Between Xiangyu Medical and Xiamen Hexing
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By analyzing existing cross correlation between Xiangyu Medical Co and Xiamen Hexing Packaging, you can compare the effects of market volatilities on Xiangyu Medical and Xiamen Hexing 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 Xiamen Hexing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyu Medical and Xiamen Hexing.
Diversification Opportunities for Xiangyu Medical and Xiamen Hexing
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xiangyu and Xiamen is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyu Medical Co and Xiamen Hexing Packaging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Hexing Packaging 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 Xiamen Hexing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Hexing Packaging has no effect on the direction of Xiangyu Medical i.e., Xiangyu Medical and Xiamen Hexing go up and down completely randomly.
Pair Corralation between Xiangyu Medical and Xiamen Hexing
Assuming the 90 days trading horizon Xiangyu Medical Co is expected to generate 1.65 times more return on investment than Xiamen Hexing. However, Xiangyu Medical is 1.65 times more volatile than Xiamen Hexing Packaging. It trades about 0.02 of its potential returns per unit of risk. Xiamen Hexing Packaging is currently generating about 0.02 per unit of risk. If you would invest 2,981 in Xiangyu Medical Co on September 13, 2024 and sell it today you would earn a total of 457.00 from holding Xiangyu Medical Co or generate 15.33% 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. Xiamen Hexing Packaging
Performance |
| Timeline |
| Xiangyu Medical |
| Xiamen Hexing Packaging |
Xiangyu Medical and Xiamen Hexing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangyu Medical and Xiamen Hexing
The main advantage of trading using opposite Xiangyu Medical and Xiamen Hexing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyu Medical position performs unexpectedly, Xiamen Hexing 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 Xiamen Hexing will offset losses from the drop in Xiamen Hexing'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 |
| Xiamen Hexing vs. Kontour Medical Technology | Xiamen Hexing vs. Double Medical Technology | Xiamen Hexing vs. Xiangyu Medical Co | Xiamen Hexing vs. Xian International Medical |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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