Correlation Between Xiangyu Medical and Jiangsu Yike
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By analyzing existing cross correlation between Xiangyu Medical Co and Jiangsu Yike Food, you can compare the effects of market volatilities on Xiangyu Medical and Jiangsu Yike 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 Jiangsu Yike. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyu Medical and Jiangsu Yike.
Diversification Opportunities for Xiangyu Medical and Jiangsu Yike
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiangyu and Jiangsu is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyu Medical Co and Jiangsu Yike Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yike Food 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 Jiangsu Yike. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yike Food has no effect on the direction of Xiangyu Medical i.e., Xiangyu Medical and Jiangsu Yike go up and down completely randomly.
Pair Corralation between Xiangyu Medical and Jiangsu Yike
Assuming the 90 days trading horizon Xiangyu Medical Co is expected to generate 1.06 times more return on investment than Jiangsu Yike. However, Xiangyu Medical is 1.06 times more volatile than Jiangsu Yike Food. It trades about 0.0 of its potential returns per unit of risk. Jiangsu Yike Food is currently generating about -0.01 per unit of risk. If you would invest 3,394 in Xiangyu Medical Co on October 9, 2024 and sell it today you would lose (594.00) from holding Xiangyu Medical Co or give up 17.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiangyu Medical Co vs. Jiangsu Yike Food
Performance |
| Timeline |
| Xiangyu Medical |
| Jiangsu Yike Food |
Xiangyu Medical and Jiangsu Yike Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangyu Medical and Jiangsu Yike
The main advantage of trading using opposite Xiangyu Medical and Jiangsu Yike positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyu Medical position performs unexpectedly, Jiangsu Yike 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 Jiangsu Yike will offset losses from the drop in Jiangsu Yike's long position.| Xiangyu Medical vs. China Mobile Limited | Xiangyu Medical vs. Western Metal Materials | Xiangyu Medical vs. Qingdao Choho Industrial | Xiangyu Medical vs. Hubei Yingtong Telecommunication |
| Jiangsu Yike vs. Tongling Nonferrous Metals | Jiangsu Yike vs. Road Environment Technology | Jiangsu Yike vs. Heilongjiang Transport Development | Jiangsu Yike vs. Aluminum Corp of |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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