Correlation Between Zhongshan Public and Chison Medical
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By analyzing existing cross correlation between Zhongshan Public Utilities and Chison Medical Technologies, you can compare the effects of market volatilities on Zhongshan Public and Chison 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 Zhongshan Public with a short position of Chison Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongshan Public and Chison Medical.
Diversification Opportunities for Zhongshan Public and Chison Medical
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhongshan and Chison is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Zhongshan Public Utilities and Chison Medical Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chison Medical Techn and Zhongshan Public 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 Zhongshan Public Utilities are associated (or correlated) with Chison Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chison Medical Techn has no effect on the direction of Zhongshan Public i.e., Zhongshan Public and Chison Medical go up and down completely randomly.
Pair Corralation between Zhongshan Public and Chison Medical
Assuming the 90 days trading horizon Zhongshan Public Utilities is expected to generate 0.62 times more return on investment than Chison Medical. However, Zhongshan Public Utilities is 1.6 times less risky than Chison Medical. It trades about 0.09 of its potential returns per unit of risk. Chison Medical Technologies is currently generating about 0.0 per unit of risk. If you would invest 724.00 in Zhongshan Public Utilities on September 1, 2024 and sell it today you would earn a total of 167.00 from holding Zhongshan Public Utilities or generate 23.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongshan Public Utilities vs. Chison Medical Technologies
Performance |
| Timeline |
| Zhongshan Public Uti |
| Chison Medical Techn |
Zhongshan Public and Chison Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongshan Public and Chison Medical
The main advantage of trading using opposite Zhongshan Public and Chison Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongshan Public position performs unexpectedly, Chison 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 Chison Medical will offset losses from the drop in Chison Medical's long position.| Zhongshan Public vs. Anhui Fuhuang Steel | Zhongshan Public vs. Gansu Jiu Steel | Zhongshan Public vs. Fujian Nanwang Environment | Zhongshan Public vs. Yindu Kitchen Equipment |
| Chison Medical vs. Nanjing Putian Telecommunications | Chison Medical vs. Shenzhen Hifuture Electric | Chison Medical vs. Tianjin Realty Development | Chison Medical vs. Shenyang Huitian Thermal |
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.
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