Correlation Between Innovative Medical and Puyang Huicheng
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By analyzing existing cross correlation between Innovative Medical Management and Puyang Huicheng Electronic, you can compare the effects of market volatilities on Innovative Medical and Puyang Huicheng 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 Puyang Huicheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innovative Medical and Puyang Huicheng.
Diversification Opportunities for Innovative Medical and Puyang Huicheng
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Innovative and Puyang is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Innovative Medical Management and Puyang Huicheng Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Puyang Huicheng Elec 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 Puyang Huicheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Puyang Huicheng Elec has no effect on the direction of Innovative Medical i.e., Innovative Medical and Puyang Huicheng go up and down completely randomly.
Pair Corralation between Innovative Medical and Puyang Huicheng
Assuming the 90 days trading horizon Innovative Medical is expected to generate 5.8 times less return on investment than Puyang Huicheng. In addition to that, Innovative Medical is 1.83 times more volatile than Puyang Huicheng Electronic. It trades about 0.02 of its total potential returns per unit of risk. Puyang Huicheng Electronic is currently generating about 0.17 per unit of volatility. If you would invest 1,513 in Puyang Huicheng Electronic on September 2, 2024 and sell it today you would earn a total of 137.00 from holding Puyang Huicheng Electronic or generate 9.05% 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. Puyang Huicheng Electronic
Performance |
| Timeline |
| Innovative Medical |
| Puyang Huicheng Elec |
Innovative Medical and Puyang Huicheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innovative Medical and Puyang Huicheng
The main advantage of trading using opposite Innovative Medical and Puyang Huicheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innovative Medical position performs unexpectedly, Puyang Huicheng 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 Puyang Huicheng will offset losses from the drop in Puyang Huicheng'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 |
| Puyang Huicheng vs. Zijin Mining Group | Puyang Huicheng vs. Wanhua Chemical Group | Puyang Huicheng vs. Baoshan Iron Steel | Puyang Huicheng vs. Shandong Gold Mining |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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