Correlation Between Xiangyu Medical and New China
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By analyzing existing cross correlation between Xiangyu Medical Co and New China Life, you can compare the effects of market volatilities on Xiangyu Medical and New China 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 New China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyu Medical and New China.
Diversification Opportunities for Xiangyu Medical and New China
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xiangyu and New is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyu Medical Co and New China Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New China Life 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 New China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New China Life has no effect on the direction of Xiangyu Medical i.e., Xiangyu Medical and New China go up and down completely randomly.
Pair Corralation between Xiangyu Medical and New China
Assuming the 90 days trading horizon Xiangyu Medical Co is expected to under-perform the New China. In addition to that, Xiangyu Medical is 2.01 times more volatile than New China Life. It trades about -0.21 of its total potential returns per unit of risk. New China Life is currently generating about -0.25 per unit of volatility. If you would invest 4,953 in New China Life on October 15, 2024 and sell it today you would lose (452.00) from holding New China Life or give up 9.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiangyu Medical Co vs. New China Life
Performance |
| Timeline |
| Xiangyu Medical |
| New China Life |
Xiangyu Medical and New China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangyu Medical and New China
The main advantage of trading using opposite Xiangyu Medical and New China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyu Medical position performs unexpectedly, New China 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 New China will offset losses from the drop in New China's long position.| Xiangyu Medical vs. Telling Telecommunication Holding | Xiangyu Medical vs. Dhc Software Co | Xiangyu Medical vs. Montage Technology Co | Xiangyu Medical vs. Beijing Bewinner Communications |
| New China vs. Suzhou Douson Drilling | New China vs. GRG Banking Equipment | New China vs. Agricultural Bank of | New China vs. Industrial Bank Co |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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