Correlation Between Xiangyu Medical and Huizhou Speed
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By analyzing existing cross correlation between Xiangyu Medical Co and Huizhou Speed Wireless, you can compare the effects of market volatilities on Xiangyu Medical and Huizhou Speed 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 Huizhou Speed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyu Medical and Huizhou Speed.
Diversification Opportunities for Xiangyu Medical and Huizhou Speed
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xiangyu and Huizhou is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyu Medical Co and Huizhou Speed Wireless in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huizhou Speed Wireless 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 Huizhou Speed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huizhou Speed Wireless has no effect on the direction of Xiangyu Medical i.e., Xiangyu Medical and Huizhou Speed go up and down completely randomly.
Pair Corralation between Xiangyu Medical and Huizhou Speed
Assuming the 90 days trading horizon Xiangyu Medical Co is expected to generate 1.23 times more return on investment than Huizhou Speed. However, Xiangyu Medical is 1.23 times more volatile than Huizhou Speed Wireless. It trades about -0.16 of its potential returns per unit of risk. Huizhou Speed Wireless is currently generating about -0.37 per unit of risk. If you would invest 3,250 in Xiangyu Medical Co on October 14, 2024 and sell it today you would lose (424.00) from holding Xiangyu Medical Co or give up 13.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiangyu Medical Co vs. Huizhou Speed Wireless
Performance |
| Timeline |
| Xiangyu Medical |
| Huizhou Speed Wireless |
Xiangyu Medical and Huizhou Speed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangyu Medical and Huizhou Speed
The main advantage of trading using opposite Xiangyu Medical and Huizhou Speed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyu Medical position performs unexpectedly, Huizhou Speed 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 Huizhou Speed will offset losses from the drop in Huizhou Speed's long position.| Xiangyu Medical vs. Shanghai Broadband Technology | Xiangyu Medical vs. Anhui Shiny Electronic | Xiangyu Medical vs. Shenzhen Clou Electronics | Xiangyu Medical vs. Weihai Honglin Electronic |
| Huizhou Speed vs. Innovative Medical Management | Huizhou Speed vs. Xiangyu Medical Co | Huizhou Speed vs. Zhonghong Pulin Medical | Huizhou Speed vs. Shuhua Sports 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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