Correlation Between Xiangyu Medical and Pengxin International
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By analyzing existing cross correlation between Xiangyu Medical Co and Pengxin International Mining, you can compare the effects of market volatilities on Xiangyu Medical and Pengxin International 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 Pengxin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyu Medical and Pengxin International.
Diversification Opportunities for Xiangyu Medical and Pengxin International
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiangyu and Pengxin is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyu Medical Co and Pengxin International Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pengxin International 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 Pengxin International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pengxin International has no effect on the direction of Xiangyu Medical i.e., Xiangyu Medical and Pengxin International go up and down completely randomly.
Pair Corralation between Xiangyu Medical and Pengxin International
Assuming the 90 days trading horizon Xiangyu Medical is expected to generate 1.26 times less return on investment than Pengxin International. In addition to that, Xiangyu Medical is 1.19 times more volatile than Pengxin International Mining. It trades about 0.13 of its total potential returns per unit of risk. Pengxin International Mining is currently generating about 0.2 per unit of volatility. If you would invest 211.00 in Pengxin International Mining on September 2, 2024 and sell it today you would earn a total of 105.00 from holding Pengxin International Mining or generate 49.76% 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. Pengxin International Mining
Performance |
| Timeline |
| Xiangyu Medical |
| Pengxin International |
Xiangyu Medical and Pengxin International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangyu Medical and Pengxin International
The main advantage of trading using opposite Xiangyu Medical and Pengxin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyu Medical position performs unexpectedly, Pengxin International 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 Pengxin International will offset losses from the drop in Pengxin International's long position.| Xiangyu Medical vs. Nanjing Putian Telecommunications | Xiangyu Medical vs. Shenzhen Hifuture Electric | Xiangyu Medical vs. Tianjin Realty Development | Xiangyu Medical vs. Shenyang Huitian Thermal |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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