Correlation Between Innovative Medical and Anhui Huilong
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By analyzing existing cross correlation between Innovative Medical Management and Anhui Huilong Agricultural, you can compare the effects of market volatilities on Innovative Medical and Anhui Huilong 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 Anhui Huilong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innovative Medical and Anhui Huilong.
Diversification Opportunities for Innovative Medical and Anhui Huilong
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Innovative and Anhui is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Innovative Medical Management and Anhui Huilong Agricultural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Huilong Agricu 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 Anhui Huilong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Huilong Agricu has no effect on the direction of Innovative Medical i.e., Innovative Medical and Anhui Huilong go up and down completely randomly.
Pair Corralation between Innovative Medical and Anhui Huilong
Assuming the 90 days trading horizon Innovative Medical Management is expected to generate 1.52 times more return on investment than Anhui Huilong. However, Innovative Medical is 1.52 times more volatile than Anhui Huilong Agricultural. It trades about 0.03 of its potential returns per unit of risk. Anhui Huilong Agricultural is currently generating about -0.01 per unit of risk. If you would invest 743.00 in Innovative Medical Management on September 3, 2024 and sell it today you would earn a total of 146.00 from holding Innovative Medical Management or generate 19.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Innovative Medical Management vs. Anhui Huilong Agricultural
Performance |
| Timeline |
| Innovative Medical |
| Anhui Huilong Agricu |
Innovative Medical and Anhui Huilong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innovative Medical and Anhui Huilong
The main advantage of trading using opposite Innovative Medical and Anhui Huilong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innovative Medical position performs unexpectedly, Anhui Huilong 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 Anhui Huilong will offset losses from the drop in Anhui Huilong's long position.| Innovative Medical vs. Chengdu Kanghua Biological | Innovative Medical vs. Beijing Wantai Biological | Innovative Medical vs. Suzhou Novoprotein Scientific | Innovative Medical vs. Aluminum Corp of |
| Anhui Huilong vs. Healthcare Co | Anhui Huilong vs. China Sports Industry | Anhui Huilong vs. Anhui Huaren Health | Anhui Huilong vs. Sportsoul Co Ltd |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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