Correlation Between Innovative Medical and Bus Online
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By analyzing existing cross correlation between Innovative Medical Management and Bus Online Co, you can compare the effects of market volatilities on Innovative Medical and Bus Online 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 Bus Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innovative Medical and Bus Online.
Diversification Opportunities for Innovative Medical and Bus Online
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Innovative and Bus is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Innovative Medical Management and Bus Online Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bus Online 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 Bus Online. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bus Online has no effect on the direction of Innovative Medical i.e., Innovative Medical and Bus Online go up and down completely randomly.
Pair Corralation between Innovative Medical and Bus Online
Assuming the 90 days trading horizon Innovative Medical Management is expected to generate 2.0 times more return on investment than Bus Online. However, Innovative Medical is 2.0 times more volatile than Bus Online Co. It trades about 0.08 of its potential returns per unit of risk. Bus Online Co is currently generating about 0.13 per unit of risk. If you would invest 820.00 in Innovative Medical Management on August 31, 2024 and sell it today you would earn a total of 51.00 from holding Innovative Medical Management or generate 6.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Innovative Medical Management vs. Bus Online Co
Performance |
| Timeline |
| Innovative Medical |
| Bus Online |
Innovative Medical and Bus Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innovative Medical and Bus Online
The main advantage of trading using opposite Innovative Medical and Bus Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innovative Medical position performs unexpectedly, Bus Online 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 Bus Online will offset losses from the drop in Bus Online's long position.| Innovative Medical vs. PetroChina Co Ltd | Innovative Medical vs. China Mobile Limited | Innovative Medical vs. Ping An Insurance | Innovative Medical vs. China Petroleum Chemical |
| Bus Online vs. Xinjiang Baodi Mining | Bus Online vs. Innovative Medical Management | Bus Online vs. Guangdong Jingyi Metal | Bus Online vs. Lonkey Industrial Co |
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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