Correlation Between Xiangyu Medical and Gan Yuan
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By analyzing existing cross correlation between Xiangyu Medical Co and Gan Yuan Foods, you can compare the effects of market volatilities on Xiangyu Medical and Gan Yuan 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 Gan Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyu Medical and Gan Yuan.
Diversification Opportunities for Xiangyu Medical and Gan Yuan
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xiangyu and Gan is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyu Medical Co and Gan Yuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gan Yuan Foods 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 Gan Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gan Yuan Foods has no effect on the direction of Xiangyu Medical i.e., Xiangyu Medical and Gan Yuan go up and down completely randomly.
Pair Corralation between Xiangyu Medical and Gan Yuan
Assuming the 90 days trading horizon Xiangyu Medical Co is expected to under-perform the Gan Yuan. In addition to that, Xiangyu Medical is 1.37 times more volatile than Gan Yuan Foods. It trades about -0.05 of its total potential returns per unit of risk. Gan Yuan Foods is currently generating about 0.03 per unit of volatility. If you would invest 7,096 in Gan Yuan Foods on September 4, 2024 and sell it today you would earn a total of 797.00 from holding Gan Yuan Foods or generate 11.23% 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. Gan Yuan Foods
Performance |
| Timeline |
| Xiangyu Medical |
| Gan Yuan Foods |
Xiangyu Medical and Gan Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangyu Medical and Gan Yuan
The main advantage of trading using opposite Xiangyu Medical and Gan Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyu Medical position performs unexpectedly, Gan Yuan 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 Gan Yuan will offset losses from the drop in Gan Yuan's long position.| Xiangyu Medical vs. HanS Laser Tech | Xiangyu Medical vs. Northking Information Technology | Xiangyu Medical vs. Duzhe Publishing Media | Xiangyu Medical vs. Guangzhou KingTeller Technology |
| Gan Yuan vs. Poly Real Estate | Gan Yuan vs. China Vanke Co | Gan Yuan vs. China Merchants Shekou | Gan Yuan vs. Huafa Industrial Co |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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