Correlation Between Lepu Medical and Xian International
Specify exactly 2 symbols:
By analyzing existing cross correlation between Lepu Medical Tech and Xian International Medical, you can compare the effects of market volatilities on Lepu Medical and Xian 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 Lepu Medical with a short position of Xian International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lepu Medical and Xian International.
Diversification Opportunities for Lepu Medical and Xian International
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lepu and Xian is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Lepu Medical Tech and Xian International Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xian International and Lepu 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 Lepu Medical Tech are associated (or correlated) with Xian International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xian International has no effect on the direction of Lepu Medical i.e., Lepu Medical and Xian International go up and down completely randomly.
Pair Corralation between Lepu Medical and Xian International
Assuming the 90 days trading horizon Lepu Medical Tech is expected to generate 1.01 times more return on investment than Xian International. However, Lepu Medical is 1.01 times more volatile than Xian International Medical. It trades about -0.04 of its potential returns per unit of risk. Xian International Medical is currently generating about -0.05 per unit of risk. If you would invest 2,187 in Lepu Medical Tech on September 26, 2024 and sell it today you would lose (999.00) from holding Lepu Medical Tech or give up 45.68% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Lepu Medical Tech vs. Xian International Medical
Performance |
Timeline |
Lepu Medical Tech |
Xian International |
Lepu Medical and Xian International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lepu Medical and Xian International
The main advantage of trading using opposite Lepu Medical and Xian International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lepu Medical position performs unexpectedly, Xian 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 Xian International will offset losses from the drop in Xian International's long position.Lepu Medical vs. Hengkang Medical Group | Lepu Medical vs. Allmed Medical Products | Lepu Medical vs. Zhongrun Resources Investment | Lepu Medical vs. Harbin Hatou Investment |
Xian International vs. Eit Environmental Development | Xian International vs. Shandong Publishing Media | Xian International vs. Changjiang Publishing Media | Xian International vs. China Publishing Media |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Transaction History View history of all your transactions and understand their impact on performance | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |