Correlation Between Xinhua Winshare and Lepu Medical
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By analyzing existing cross correlation between Xinhua Winshare Publishing and Lepu Medical Tech, you can compare the effects of market volatilities on Xinhua Winshare and Lepu Medical 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 Xinhua Winshare with a short position of Lepu Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinhua Winshare and Lepu Medical.
Diversification Opportunities for Xinhua Winshare and Lepu Medical
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Xinhua and Lepu is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Xinhua Winshare Publishing and Lepu Medical Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lepu Medical Tech and Xinhua Winshare 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 Xinhua Winshare Publishing are associated (or correlated) with Lepu Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lepu Medical Tech has no effect on the direction of Xinhua Winshare i.e., Xinhua Winshare and Lepu Medical go up and down completely randomly.
Pair Corralation between Xinhua Winshare and Lepu Medical
Assuming the 90 days trading horizon Xinhua Winshare Publishing is expected to generate 0.98 times more return on investment than Lepu Medical. However, Xinhua Winshare Publishing is 1.02 times less risky than Lepu Medical. It trades about 0.05 of its potential returns per unit of risk. Lepu Medical Tech is currently generating about -0.04 per unit of risk. If you would invest 985.00 in Xinhua Winshare Publishing on October 4, 2024 and sell it today you would earn a total of 589.00 from holding Xinhua Winshare Publishing or generate 59.8% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Xinhua Winshare Publishing vs. Lepu Medical Tech
Performance |
Timeline |
Xinhua Winshare Publ |
Lepu Medical Tech |
Xinhua Winshare and Lepu Medical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xinhua Winshare and Lepu Medical
The main advantage of trading using opposite Xinhua Winshare and Lepu Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinhua Winshare position performs unexpectedly, Lepu Medical 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 Lepu Medical will offset losses from the drop in Lepu Medical's long position.Xinhua Winshare vs. Kweichow Moutai Co | Xinhua Winshare vs. Beijing Roborock Technology | Xinhua Winshare vs. G bits Network Technology | Xinhua Winshare vs. China Mobile Limited |
Lepu Medical vs. CGN Nuclear Technology | Lepu Medical vs. Thinkingdom Media Group | Lepu Medical vs. Sichuan Newsnet Media | Lepu Medical vs. XiaMen HongXin Electron tech |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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