Correlation Between Xiangyu Medical and Chengtun Mining
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By analyzing existing cross correlation between Xiangyu Medical Co and Chengtun Mining Group, you can compare the effects of market volatilities on Xiangyu Medical and Chengtun Mining 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 Chengtun Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyu Medical and Chengtun Mining.
Diversification Opportunities for Xiangyu Medical and Chengtun Mining
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xiangyu and Chengtun is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyu Medical Co and Chengtun Mining Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengtun Mining Group 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 Chengtun Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengtun Mining Group has no effect on the direction of Xiangyu Medical i.e., Xiangyu Medical and Chengtun Mining go up and down completely randomly.
Pair Corralation between Xiangyu Medical and Chengtun Mining
Assuming the 90 days trading horizon Xiangyu Medical Co is expected to generate 1.8 times more return on investment than Chengtun Mining. However, Xiangyu Medical is 1.8 times more volatile than Chengtun Mining Group. It trades about 0.13 of its potential returns per unit of risk. Chengtun Mining Group is currently generating about 0.18 per unit of risk. If you would invest 2,360 in Xiangyu Medical Co on September 2, 2024 and sell it today you would earn a total of 812.00 from holding Xiangyu Medical Co or generate 34.41% 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. Chengtun Mining Group
Performance |
| Timeline |
| Xiangyu Medical |
| Chengtun Mining Group |
Xiangyu Medical and Chengtun Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangyu Medical and Chengtun Mining
The main advantage of trading using opposite Xiangyu Medical and Chengtun Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyu Medical position performs unexpectedly, Chengtun Mining 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 Chengtun Mining will offset losses from the drop in Chengtun Mining'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 |
| Chengtun Mining vs. Xiamen Jihong Package | Chengtun Mining vs. Sichuan Teway Food | Chengtun Mining vs. Haima Automobile Group | Chengtun Mining vs. Suzhou Weizhixiang Food |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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