Correlation Between Xiangyu Medical and Dongfeng Automobile
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By analyzing existing cross correlation between Xiangyu Medical Co and Dongfeng Automobile Co, you can compare the effects of market volatilities on Xiangyu Medical and Dongfeng Automobile 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 Dongfeng Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyu Medical and Dongfeng Automobile.
Diversification Opportunities for Xiangyu Medical and Dongfeng Automobile
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xiangyu and Dongfeng is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyu Medical Co and Dongfeng Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongfeng Automobile 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 Dongfeng Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongfeng Automobile has no effect on the direction of Xiangyu Medical i.e., Xiangyu Medical and Dongfeng Automobile go up and down completely randomly.
Pair Corralation between Xiangyu Medical and Dongfeng Automobile
Assuming the 90 days trading horizon Xiangyu Medical Co is expected to under-perform the Dongfeng Automobile. In addition to that, Xiangyu Medical is 1.07 times more volatile than Dongfeng Automobile Co. It trades about -0.01 of its total potential returns per unit of risk. Dongfeng Automobile Co is currently generating about 0.03 per unit of volatility. If you would invest 576.00 in Dongfeng Automobile Co on October 12, 2024 and sell it today you would earn a total of 107.00 from holding Dongfeng Automobile Co or generate 18.58% 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. Dongfeng Automobile Co
Performance |
| Timeline |
| Xiangyu Medical |
| Dongfeng Automobile |
Xiangyu Medical and Dongfeng Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangyu Medical and Dongfeng Automobile
The main advantage of trading using opposite Xiangyu Medical and Dongfeng Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyu Medical position performs unexpectedly, Dongfeng Automobile 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 Dongfeng Automobile will offset losses from the drop in Dongfeng Automobile's long position.| Xiangyu Medical vs. Shuhua Sports Co | Xiangyu Medical vs. Malion New Materials | Xiangyu Medical vs. Western Metal Materials | Xiangyu Medical vs. Ningxia Building Materials |
| Dongfeng Automobile vs. Xiangyu Medical Co | Dongfeng Automobile vs. Kontour Medical Technology | Dongfeng Automobile vs. Chinese Universe Publishing | Dongfeng Automobile vs. Shenzhen Glory Medical |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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