Correlation Between Xiangyu Medical and Ningbo David
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xiangyu Medical Co and Ningbo David Medical, you can compare the effects of market volatilities on Xiangyu Medical and Ningbo David 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 Ningbo David. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyu Medical and Ningbo David.
Diversification Opportunities for Xiangyu Medical and Ningbo David
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xiangyu and Ningbo is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyu Medical Co and Ningbo David Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo David Medical 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 Ningbo David. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo David Medical has no effect on the direction of Xiangyu Medical i.e., Xiangyu Medical and Ningbo David go up and down completely randomly.
Pair Corralation between Xiangyu Medical and Ningbo David
Assuming the 90 days trading horizon Xiangyu Medical Co is expected to generate 2.02 times more return on investment than Ningbo David. However, Xiangyu Medical is 2.02 times more volatile than Ningbo David Medical. It trades about 0.12 of its potential returns per unit of risk. Ningbo David Medical is currently generating about 0.02 per unit of risk. If you would invest 2,857 in Xiangyu Medical Co on September 1, 2024 and sell it today you would earn a total of 315.00 from holding Xiangyu Medical Co or generate 11.03% 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. Ningbo David Medical
Performance |
| Timeline |
| Xiangyu Medical |
| Ningbo David Medical |
Xiangyu Medical and Ningbo David Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangyu Medical and Ningbo David
The main advantage of trading using opposite Xiangyu Medical and Ningbo David positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyu Medical position performs unexpectedly, Ningbo David 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 Ningbo David will offset losses from the drop in Ningbo David's long position.| Xiangyu Medical vs. Nanjing Putian Telecommunications | Xiangyu Medical vs. Shenzhen Hifuture Electric | Xiangyu Medical vs. Tianjin Realty Development | Xiangyu Medical vs. Shenyang Huitian Thermal |
| Ningbo David vs. Nanjing Putian Telecommunications | Ningbo David vs. Shenzhen Hifuture Electric | Ningbo David vs. Tianjin Realty Development | Ningbo David vs. Shenyang Huitian Thermal |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |