Correlation Between Xiangyu Medical and Chengdu Bright
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xiangyu Medical Co and Chengdu Bright Eye, you can compare the effects of market volatilities on Xiangyu Medical and Chengdu Bright 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 Chengdu Bright. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyu Medical and Chengdu Bright.
Diversification Opportunities for Xiangyu Medical and Chengdu Bright
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xiangyu and Chengdu is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyu Medical Co and Chengdu Bright Eye in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Bright Eye 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 Chengdu Bright. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Bright Eye has no effect on the direction of Xiangyu Medical i.e., Xiangyu Medical and Chengdu Bright go up and down completely randomly.
Pair Corralation between Xiangyu Medical and Chengdu Bright
Assuming the 90 days trading horizon Xiangyu Medical Co is expected to generate 0.86 times more return on investment than Chengdu Bright. However, Xiangyu Medical Co is 1.16 times less risky than Chengdu Bright. It trades about -0.03 of its potential returns per unit of risk. Chengdu Bright Eye is currently generating about -0.04 per unit of risk. If you would invest 5,212 in Xiangyu Medical Co on September 14, 2024 and sell it today you would lose (1,962) from holding Xiangyu Medical Co or give up 37.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiangyu Medical Co vs. Chengdu Bright Eye
Performance |
| Timeline |
| Xiangyu Medical |
| Chengdu Bright Eye |
Xiangyu Medical and Chengdu Bright Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangyu Medical and Chengdu Bright
The main advantage of trading using opposite Xiangyu Medical and Chengdu Bright positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyu Medical position performs unexpectedly, Chengdu Bright 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 Chengdu Bright will offset losses from the drop in Chengdu Bright'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 |
| Chengdu Bright vs. Xiangyu Medical Co | Chengdu Bright vs. Nanjing Medlander Medical | Chengdu Bright vs. Huaxia Fund Management | Chengdu Bright vs. Ningbo MedicalSystem Biotechnology |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |