Correlation Between Xiangyu Medical and Guangzhou Boji
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By analyzing existing cross correlation between Xiangyu Medical Co and Guangzhou Boji Medical, you can compare the effects of market volatilities on Xiangyu Medical and Guangzhou Boji 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 Guangzhou Boji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyu Medical and Guangzhou Boji.
Diversification Opportunities for Xiangyu Medical and Guangzhou Boji
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xiangyu and Guangzhou is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyu Medical Co and Guangzhou Boji Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Boji 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 Guangzhou Boji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Boji Medical has no effect on the direction of Xiangyu Medical i.e., Xiangyu Medical and Guangzhou Boji go up and down completely randomly.
Pair Corralation between Xiangyu Medical and Guangzhou Boji
Assuming the 90 days trading horizon Xiangyu Medical is expected to generate 2.52 times less return on investment than Guangzhou Boji. But when comparing it to its historical volatility, Xiangyu Medical Co is 1.05 times less risky than Guangzhou Boji. It trades about 0.02 of its potential returns per unit of risk. Guangzhou Boji Medical is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 974.00 in Guangzhou Boji Medical on September 13, 2024 and sell it today you would earn a total of 28.00 from holding Guangzhou Boji Medical or generate 2.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Xiangyu Medical Co vs. Guangzhou Boji Medical
Performance |
| Timeline |
| Xiangyu Medical |
| Guangzhou Boji Medical |
Xiangyu Medical and Guangzhou Boji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangyu Medical and Guangzhou Boji
The main advantage of trading using opposite Xiangyu Medical and Guangzhou Boji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyu Medical position performs unexpectedly, Guangzhou Boji 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 Guangzhou Boji will offset losses from the drop in Guangzhou Boji'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 |
| Guangzhou Boji vs. China Life Insurance | Guangzhou Boji vs. Cinda Securities Co | Guangzhou Boji vs. Piotech Inc A | Guangzhou Boji vs. Dongxing Sec 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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