Correlation Between Xiangyu Medical and Puyang Huicheng
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By analyzing existing cross correlation between Xiangyu Medical Co and Puyang Huicheng Electronic, you can compare the effects of market volatilities on Xiangyu Medical and Puyang Huicheng 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 Puyang Huicheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyu Medical and Puyang Huicheng.
Diversification Opportunities for Xiangyu Medical and Puyang Huicheng
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xiangyu and Puyang is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyu Medical Co and Puyang Huicheng Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Puyang Huicheng Elec 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 Puyang Huicheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Puyang Huicheng Elec has no effect on the direction of Xiangyu Medical i.e., Xiangyu Medical and Puyang Huicheng go up and down completely randomly.
Pair Corralation between Xiangyu Medical and Puyang Huicheng
Assuming the 90 days trading horizon Xiangyu Medical Co is expected to generate 1.78 times more return on investment than Puyang Huicheng. However, Xiangyu Medical is 1.78 times more volatile than Puyang Huicheng Electronic. It trades about 0.17 of its potential returns per unit of risk. Puyang Huicheng Electronic is currently generating about 0.17 per unit of risk. If you would invest 2,728 in Xiangyu Medical Co on September 2, 2024 and sell it today you would earn a total of 444.00 from holding Xiangyu Medical Co or generate 16.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiangyu Medical Co vs. Puyang Huicheng Electronic
Performance |
| Timeline |
| Xiangyu Medical |
| Puyang Huicheng Elec |
Xiangyu Medical and Puyang Huicheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangyu Medical and Puyang Huicheng
The main advantage of trading using opposite Xiangyu Medical and Puyang Huicheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyu Medical position performs unexpectedly, Puyang Huicheng 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 Puyang Huicheng will offset losses from the drop in Puyang Huicheng'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 |
| Puyang Huicheng vs. Zijin Mining Group | Puyang Huicheng vs. Wanhua Chemical Group | Puyang Huicheng vs. Baoshan Iron Steel | Puyang Huicheng vs. Shandong Gold Mining |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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