Correlation Between Xiangyu Medical and Ningbo Fangzheng
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By analyzing existing cross correlation between Xiangyu Medical Co and Ningbo Fangzheng Automobile, you can compare the effects of market volatilities on Xiangyu Medical and Ningbo Fangzheng 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 Fangzheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyu Medical and Ningbo Fangzheng.
Diversification Opportunities for Xiangyu Medical and Ningbo Fangzheng
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xiangyu and Ningbo is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyu Medical Co and Ningbo Fangzheng Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Fangzheng Aut 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 Fangzheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Fangzheng Aut has no effect on the direction of Xiangyu Medical i.e., Xiangyu Medical and Ningbo Fangzheng go up and down completely randomly.
Pair Corralation between Xiangyu Medical and Ningbo Fangzheng
Assuming the 90 days trading horizon Xiangyu Medical is expected to generate 1.23 times less return on investment than Ningbo Fangzheng. In addition to that, Xiangyu Medical is 1.4 times more volatile than Ningbo Fangzheng Automobile. It trades about 0.1 of its total potential returns per unit of risk. Ningbo Fangzheng Automobile is currently generating about 0.17 per unit of volatility. If you would invest 1,475 in Ningbo Fangzheng Automobile on September 5, 2024 and sell it today you would earn a total of 174.00 from holding Ningbo Fangzheng Automobile or generate 11.8% 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 Fangzheng Automobile
Performance |
| Timeline |
| Xiangyu Medical |
| Ningbo Fangzheng Aut |
Xiangyu Medical and Ningbo Fangzheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangyu Medical and Ningbo Fangzheng
The main advantage of trading using opposite Xiangyu Medical and Ningbo Fangzheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyu Medical position performs unexpectedly, Ningbo Fangzheng 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 Fangzheng will offset losses from the drop in Ningbo Fangzheng's long position.| Xiangyu Medical vs. Kweichow Moutai Co | Xiangyu Medical vs. Contemporary Amperex Technology | Xiangyu Medical vs. G bits Network Technology | Xiangyu Medical vs. Beijing Roborock Technology |
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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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