Correlation Between Xiangyu Medical and Shanghai Metersbonwe
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By analyzing existing cross correlation between Xiangyu Medical Co and Shanghai Metersbonwe FashionAccessories, you can compare the effects of market volatilities on Xiangyu Medical and Shanghai Metersbonwe 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 Shanghai Metersbonwe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyu Medical and Shanghai Metersbonwe.
Diversification Opportunities for Xiangyu Medical and Shanghai Metersbonwe
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xiangyu and Shanghai is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyu Medical Co and Shanghai Metersbonwe FashionAc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Metersbonwe 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 Shanghai Metersbonwe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Metersbonwe has no effect on the direction of Xiangyu Medical i.e., Xiangyu Medical and Shanghai Metersbonwe go up and down completely randomly.
Pair Corralation between Xiangyu Medical and Shanghai Metersbonwe
Assuming the 90 days trading horizon Xiangyu Medical is expected to generate 12.09 times less return on investment than Shanghai Metersbonwe. But when comparing it to its historical volatility, Xiangyu Medical Co is 1.8 times less risky than Shanghai Metersbonwe. It trades about 0.04 of its potential returns per unit of risk. Shanghai Metersbonwe FashionAccessories is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 195.00 in Shanghai Metersbonwe FashionAccessories on September 13, 2024 and sell it today you would earn a total of 69.00 from holding Shanghai Metersbonwe FashionAccessories or generate 35.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiangyu Medical Co vs. Shanghai Metersbonwe FashionAc
Performance |
| Timeline |
| Xiangyu Medical |
| Shanghai Metersbonwe |
Xiangyu Medical and Shanghai Metersbonwe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangyu Medical and Shanghai Metersbonwe
The main advantage of trading using opposite Xiangyu Medical and Shanghai Metersbonwe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyu Medical position performs unexpectedly, Shanghai Metersbonwe 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 Shanghai Metersbonwe will offset losses from the drop in Shanghai Metersbonwe'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 |
| Shanghai Metersbonwe vs. Industrial and Commercial | Shanghai Metersbonwe vs. Agricultural Bank of | Shanghai Metersbonwe vs. China Construction Bank | Shanghai Metersbonwe vs. Bank of China |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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