Correlation Between Xiangyu Medical and Long Yuan
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By analyzing existing cross correlation between Xiangyu Medical Co and Long Yuan Construction, you can compare the effects of market volatilities on Xiangyu Medical and Long Yuan 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 Long Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyu Medical and Long Yuan.
Diversification Opportunities for Xiangyu Medical and Long Yuan
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xiangyu and Long is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyu Medical Co and Long Yuan Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Long Yuan Construction 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 Long Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Long Yuan Construction has no effect on the direction of Xiangyu Medical i.e., Xiangyu Medical and Long Yuan go up and down completely randomly.
Pair Corralation between Xiangyu Medical and Long Yuan
Assuming the 90 days trading horizon Xiangyu Medical Co is expected to generate 1.16 times more return on investment than Long Yuan. However, Xiangyu Medical is 1.16 times more volatile than Long Yuan Construction. It trades about 0.02 of its potential returns per unit of risk. Long Yuan Construction is currently generating about -0.01 per unit of risk. If you would invest 3,012 in Xiangyu Medical Co on September 14, 2024 and sell it today you would earn a total of 238.00 from holding Xiangyu Medical Co or generate 7.9% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Xiangyu Medical Co vs. Long Yuan Construction
Performance |
Timeline |
Xiangyu Medical |
Long Yuan Construction |
Xiangyu Medical and Long Yuan Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xiangyu Medical and Long Yuan
The main advantage of trading using opposite Xiangyu Medical and Long Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyu Medical position performs unexpectedly, Long Yuan 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 Long Yuan will offset losses from the drop in Long Yuan's long position.Xiangyu Medical vs. Industrial and Commercial | Xiangyu Medical vs. Kweichow Moutai Co | Xiangyu Medical vs. Agricultural Bank of | Xiangyu Medical vs. China Mobile Limited |
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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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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