Correlation Between Xinxiang Chemical and Healthcare
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By analyzing existing cross correlation between Xinxiang Chemical Fiber and Healthcare Co, you can compare the effects of market volatilities on Xinxiang Chemical and Healthcare 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 Xinxiang Chemical with a short position of Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinxiang Chemical and Healthcare.
Diversification Opportunities for Xinxiang Chemical and Healthcare
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xinxiang and Healthcare is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Xinxiang Chemical Fiber and Healthcare Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Healthcare and Xinxiang Chemical 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 Xinxiang Chemical Fiber are associated (or correlated) with Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Healthcare has no effect on the direction of Xinxiang Chemical i.e., Xinxiang Chemical and Healthcare go up and down completely randomly.
Pair Corralation between Xinxiang Chemical and Healthcare
Assuming the 90 days trading horizon Xinxiang Chemical Fiber is expected to generate 1.32 times more return on investment than Healthcare. However, Xinxiang Chemical is 1.32 times more volatile than Healthcare Co. It trades about 0.19 of its potential returns per unit of risk. Healthcare Co is currently generating about 0.18 per unit of risk. If you would invest 307.00 in Xinxiang Chemical Fiber on September 20, 2024 and sell it today you would earn a total of 170.00 from holding Xinxiang Chemical Fiber or generate 55.37% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Xinxiang Chemical Fiber vs. Healthcare Co
Performance |
Timeline |
Xinxiang Chemical Fiber |
Healthcare |
Xinxiang Chemical and Healthcare Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xinxiang Chemical and Healthcare
The main advantage of trading using opposite Xinxiang Chemical and Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinxiang Chemical position performs unexpectedly, Healthcare 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 Healthcare will offset losses from the drop in Healthcare's long position.Xinxiang Chemical vs. Zijin Mining Group | Xinxiang Chemical vs. Wanhua Chemical Group | Xinxiang Chemical vs. Baoshan Iron Steel | Xinxiang Chemical vs. Shandong Gold Mining |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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