Correlation Between Xiangyu Medical and Hefei Metalforming
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By analyzing existing cross correlation between Xiangyu Medical Co and Hefei Metalforming Mach, you can compare the effects of market volatilities on Xiangyu Medical and Hefei Metalforming 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 Hefei Metalforming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyu Medical and Hefei Metalforming.
Diversification Opportunities for Xiangyu Medical and Hefei Metalforming
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xiangyu and Hefei is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyu Medical Co and Hefei Metalforming Mach in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hefei Metalforming Mach 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 Hefei Metalforming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hefei Metalforming Mach has no effect on the direction of Xiangyu Medical i.e., Xiangyu Medical and Hefei Metalforming go up and down completely randomly.
Pair Corralation between Xiangyu Medical and Hefei Metalforming
Assuming the 90 days trading horizon Xiangyu Medical is expected to generate 1.09 times less return on investment than Hefei Metalforming. In addition to that, Xiangyu Medical is 1.24 times more volatile than Hefei Metalforming Mach. It trades about 0.13 of its total potential returns per unit of risk. Hefei Metalforming Mach is currently generating about 0.18 per unit of volatility. If you would invest 550.00 in Hefei Metalforming Mach on September 2, 2024 and sell it today you would earn a total of 229.00 from holding Hefei Metalforming Mach or generate 41.64% 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. Hefei Metalforming Mach
Performance |
| Timeline |
| Xiangyu Medical |
| Hefei Metalforming Mach |
Xiangyu Medical and Hefei Metalforming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangyu Medical and Hefei Metalforming
The main advantage of trading using opposite Xiangyu Medical and Hefei Metalforming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyu Medical position performs unexpectedly, Hefei Metalforming 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 Hefei Metalforming will offset losses from the drop in Hefei Metalforming'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 |
| Hefei Metalforming vs. Anhui Transport Consulting | Hefei Metalforming vs. Western Metal Materials | Hefei Metalforming vs. Yunnan Xiyi Industrial | Hefei Metalforming vs. China Minmetals Rare |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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