Correlation Between Xiangyu Medical and Luenmei Quantum
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By analyzing existing cross correlation between Xiangyu Medical Co and Luenmei Quantum Co, you can compare the effects of market volatilities on Xiangyu Medical and Luenmei Quantum 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 Luenmei Quantum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyu Medical and Luenmei Quantum.
Diversification Opportunities for Xiangyu Medical and Luenmei Quantum
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiangyu and Luenmei is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyu Medical Co and Luenmei Quantum Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luenmei Quantum 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 Luenmei Quantum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luenmei Quantum has no effect on the direction of Xiangyu Medical i.e., Xiangyu Medical and Luenmei Quantum go up and down completely randomly.
Pair Corralation between Xiangyu Medical and Luenmei Quantum
Assuming the 90 days trading horizon Xiangyu Medical Co is expected to generate 1.9 times more return on investment than Luenmei Quantum. However, Xiangyu Medical is 1.9 times more volatile than Luenmei Quantum Co. It trades about 0.11 of its potential returns per unit of risk. Luenmei Quantum Co is currently generating about -0.03 per unit of risk. If you would invest 2,848 in Xiangyu Medical Co on November 3, 2024 and sell it today you would earn a total of 109.00 from holding Xiangyu Medical Co or generate 3.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiangyu Medical Co vs. Luenmei Quantum Co
Performance |
| Timeline |
| Xiangyu Medical |
| Luenmei Quantum |
Xiangyu Medical and Luenmei Quantum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangyu Medical and Luenmei Quantum
The main advantage of trading using opposite Xiangyu Medical and Luenmei Quantum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyu Medical position performs unexpectedly, Luenmei Quantum 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 Luenmei Quantum will offset losses from the drop in Luenmei Quantum's long position.| Xiangyu Medical vs. Vats Liquor Chain | Xiangyu Medical vs. Hainan Haiqi Transportation | Xiangyu Medical vs. Union Semiconductor Co | Xiangyu Medical vs. Anhui Transport Consulting |
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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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