Correlation Between Innovative Medical and Era
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By analyzing existing cross correlation between Innovative Medical Management and Era Co, you can compare the effects of market volatilities on Innovative Medical and Era 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 Era. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innovative Medical and Era.
Diversification Opportunities for Innovative Medical and Era
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Innovative and Era is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Innovative Medical Management and Era Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Era Co 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 Era. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Era Co has no effect on the direction of Innovative Medical i.e., Innovative Medical and Era go up and down completely randomly.
Pair Corralation between Innovative Medical and Era
Assuming the 90 days trading horizon Innovative Medical Management is expected to generate 1.39 times more return on investment than Era. However, Innovative Medical is 1.39 times more volatile than Era Co. It trades about 0.04 of its potential returns per unit of risk. Era Co is currently generating about 0.03 per unit of risk. If you would invest 662.00 in Innovative Medical Management on September 13, 2024 and sell it today you would earn a total of 295.00 from holding Innovative Medical Management or generate 44.56% 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. Era Co
Performance |
| Timeline |
| Innovative Medical |
| Era Co |
Innovative Medical and Era Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innovative Medical and Era
The main advantage of trading using opposite Innovative Medical and Era positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innovative Medical position performs unexpectedly, Era 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 Era will offset losses from the drop in Era's long position.| Innovative Medical vs. Nanjing Putian Telecommunications | Innovative Medical vs. Tianjin Realty Development | Innovative Medical vs. Kangyue Technology Co | Innovative Medical vs. Shenzhen Hifuture Electric |
| Era vs. Xingguang Agricultural Mach | Era vs. Senci Electric Machinery | Era vs. Innovative Medical Management | Era vs. Double Medical Technology |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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