Correlation Between Innovative Medical and Maoming Petro
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By analyzing existing cross correlation between Innovative Medical Management and Maoming Petro Chemical Shihua, you can compare the effects of market volatilities on Innovative Medical and Maoming Petro 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 Innovative Medical with a short position of Maoming Petro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innovative Medical and Maoming Petro.
Diversification Opportunities for Innovative Medical and Maoming Petro
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Innovative and Maoming is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Innovative Medical Management and Maoming Petro Chemical Shihua in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maoming Petro Chemical and Innovative 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 Innovative Medical Management are associated (or correlated) with Maoming Petro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maoming Petro Chemical has no effect on the direction of Innovative Medical i.e., Innovative Medical and Maoming Petro go up and down completely randomly.
Pair Corralation between Innovative Medical and Maoming Petro
Assuming the 90 days trading horizon Innovative Medical Management is expected to generate 2.18 times more return on investment than Maoming Petro. However, Innovative Medical is 2.18 times more volatile than Maoming Petro Chemical Shihua. It trades about -0.05 of its potential returns per unit of risk. Maoming Petro Chemical Shihua is currently generating about -0.32 per unit of risk. If you would invest 957.00 in Innovative Medical Management on October 12, 2024 and sell it today you would lose (81.00) from holding Innovative Medical Management or give up 8.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Innovative Medical Management vs. Maoming Petro Chemical Shihua
Performance |
| Timeline |
| Innovative Medical |
| Maoming Petro Chemical |
Innovative Medical and Maoming Petro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innovative Medical and Maoming Petro
The main advantage of trading using opposite Innovative Medical and Maoming Petro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innovative Medical position performs unexpectedly, Maoming Petro 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 Maoming Petro will offset losses from the drop in Maoming Petro's long position.| Innovative Medical vs. Guangzhou KingTeller Technology | Innovative Medical vs. Digiwin Software Co | Innovative Medical vs. Sinofibers Technology Co | Innovative Medical vs. Sunwave Communications Co |
| Maoming Petro vs. Tongxing Environmental Protection | Maoming Petro vs. Innovative Medical Management | Maoming Petro vs. Xiangyu Medical Co | Maoming Petro vs. Shandong Iron and |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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