Correlation Between Innovative Medical and Shenzhen Glory
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By analyzing existing cross correlation between Innovative Medical Management and Shenzhen Glory Medical, you can compare the effects of market volatilities on Innovative Medical and Shenzhen Glory 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 Shenzhen Glory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innovative Medical and Shenzhen Glory.
Diversification Opportunities for Innovative Medical and Shenzhen Glory
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Innovative and Shenzhen is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Innovative Medical Management and Shenzhen Glory Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Glory Medical 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 Shenzhen Glory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Glory Medical has no effect on the direction of Innovative Medical i.e., Innovative Medical and Shenzhen Glory go up and down completely randomly.
Pair Corralation between Innovative Medical and Shenzhen Glory
Assuming the 90 days trading horizon Innovative Medical is expected to generate 5.47 times less return on investment than Shenzhen Glory. In addition to that, Innovative Medical is 2.14 times more volatile than Shenzhen Glory Medical. It trades about 0.02 of its total potential returns per unit of risk. Shenzhen Glory Medical is currently generating about 0.18 per unit of volatility. If you would invest 311.00 in Shenzhen Glory Medical on September 2, 2024 and sell it today you would earn a total of 27.00 from holding Shenzhen Glory Medical or generate 8.68% 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. Shenzhen Glory Medical
Performance |
| Timeline |
| Innovative Medical |
| Shenzhen Glory Medical |
Innovative Medical and Shenzhen Glory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innovative Medical and Shenzhen Glory
The main advantage of trading using opposite Innovative Medical and Shenzhen Glory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innovative Medical position performs unexpectedly, Shenzhen Glory 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 Shenzhen Glory will offset losses from the drop in Shenzhen Glory's long position.| Innovative Medical vs. China Life Insurance | Innovative Medical vs. Cinda Securities Co | Innovative Medical vs. Piotech Inc A | Innovative Medical vs. Dongxing Sec Co |
| Shenzhen Glory vs. Industrial and Commercial | Shenzhen Glory vs. Agricultural Bank of | Shenzhen Glory vs. China Construction Bank | Shenzhen Glory vs. Bank of China |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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