Correlation Between Xiangyu Medical and Ningbo MedicalSystem
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By analyzing existing cross correlation between Xiangyu Medical Co and Ningbo MedicalSystem Biotechnology, you can compare the effects of market volatilities on Xiangyu Medical and Ningbo MedicalSystem 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 MedicalSystem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyu Medical and Ningbo MedicalSystem.
Diversification Opportunities for Xiangyu Medical and Ningbo MedicalSystem
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xiangyu and Ningbo is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyu Medical Co and Ningbo MedicalSystem Biotechno in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo MedicalSystem 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 MedicalSystem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo MedicalSystem has no effect on the direction of Xiangyu Medical i.e., Xiangyu Medical and Ningbo MedicalSystem go up and down completely randomly.
Pair Corralation between Xiangyu Medical and Ningbo MedicalSystem
Assuming the 90 days trading horizon Xiangyu Medical Co is expected to generate 2.57 times more return on investment than Ningbo MedicalSystem. However, Xiangyu Medical is 2.57 times more volatile than Ningbo MedicalSystem Biotechnology. It trades about 0.01 of its potential returns per unit of risk. Ningbo MedicalSystem Biotechnology is currently generating about -0.16 per unit of risk. If you would invest 3,149 in Xiangyu Medical Co on September 28, 2024 and sell it today you would lose (16.00) from holding Xiangyu Medical Co or give up 0.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiangyu Medical Co vs. Ningbo MedicalSystem Biotechno
Performance |
| Timeline |
| Xiangyu Medical |
| Ningbo MedicalSystem |
Xiangyu Medical and Ningbo MedicalSystem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangyu Medical and Ningbo MedicalSystem
The main advantage of trading using opposite Xiangyu Medical and Ningbo MedicalSystem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyu Medical position performs unexpectedly, Ningbo MedicalSystem 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 MedicalSystem will offset losses from the drop in Ningbo MedicalSystem's long position.| Xiangyu Medical vs. New China Life | Xiangyu Medical vs. Ming Yang Smart | Xiangyu Medical vs. 159681 | Xiangyu Medical vs. 159005 |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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