Correlation Between Xiangyu Medical and Shanghai Action
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xiangyu Medical Co and Shanghai Action Education, you can compare the effects of market volatilities on Xiangyu Medical and Shanghai Action 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 Shanghai Action. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyu Medical and Shanghai Action.
Diversification Opportunities for Xiangyu Medical and Shanghai Action
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xiangyu and Shanghai is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyu Medical Co and Shanghai Action Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Action Education 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 Shanghai Action. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Action Education has no effect on the direction of Xiangyu Medical i.e., Xiangyu Medical and Shanghai Action go up and down completely randomly.
Pair Corralation between Xiangyu Medical and Shanghai Action
Assuming the 90 days trading horizon Xiangyu Medical Co is expected to under-perform the Shanghai Action. In addition to that, Xiangyu Medical is 1.63 times more volatile than Shanghai Action Education. It trades about -0.1 of its total potential returns per unit of risk. Shanghai Action Education is currently generating about -0.07 per unit of volatility. If you would invest 3,711 in Shanghai Action Education on October 17, 2024 and sell it today you would lose (160.00) from holding Shanghai Action Education or give up 4.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiangyu Medical Co vs. Shanghai Action Education
Performance |
| Timeline |
| Xiangyu Medical |
| Shanghai Action Education |
Xiangyu Medical and Shanghai Action Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangyu Medical and Shanghai Action
The main advantage of trading using opposite Xiangyu Medical and Shanghai Action positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyu Medical position performs unexpectedly, Shanghai Action 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 Shanghai Action will offset losses from the drop in Shanghai Action's long position.| Xiangyu Medical vs. Holitech Technology Co | Xiangyu Medical vs. Zotye Automobile Co | Xiangyu Medical vs. Bus Online Co | Xiangyu Medical vs. Cultural Investment Holdings |
| Shanghai Action vs. Xiangyu Medical Co | Shanghai Action vs. Guangdong Jingyi Metal | Shanghai Action vs. Winner Medical Co | Shanghai Action vs. Rising Nonferrous Metals |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |