Correlation Between Innovative Medical and Chengdu Kanghua
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By analyzing existing cross correlation between Innovative Medical Management and Chengdu Kanghua Biological, you can compare the effects of market volatilities on Innovative Medical and Chengdu Kanghua 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 Chengdu Kanghua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innovative Medical and Chengdu Kanghua.
Diversification Opportunities for Innovative Medical and Chengdu Kanghua
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Innovative and Chengdu is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Innovative Medical Management and Chengdu Kanghua Biological in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Kanghua Biol 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 Chengdu Kanghua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Kanghua Biol has no effect on the direction of Innovative Medical i.e., Innovative Medical and Chengdu Kanghua go up and down completely randomly.
Pair Corralation between Innovative Medical and Chengdu Kanghua
Assuming the 90 days trading horizon Innovative Medical Management is expected to generate 0.99 times more return on investment than Chengdu Kanghua. However, Innovative Medical Management is 1.01 times less risky than Chengdu Kanghua. It trades about 0.03 of its potential returns per unit of risk. Chengdu Kanghua Biological is currently generating about 0.0 per unit of risk. If you would invest 847.00 in Innovative Medical Management on September 3, 2024 and sell it today you would earn a total of 42.00 from holding Innovative Medical Management or generate 4.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Innovative Medical Management vs. Chengdu Kanghua Biological
Performance |
| Timeline |
| Innovative Medical |
| Chengdu Kanghua Biol |
Innovative Medical and Chengdu Kanghua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innovative Medical and Chengdu Kanghua
The main advantage of trading using opposite Innovative Medical and Chengdu Kanghua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innovative Medical position performs unexpectedly, Chengdu Kanghua 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 Chengdu Kanghua will offset losses from the drop in Chengdu Kanghua'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 |
| Chengdu Kanghua vs. Chengdu Xinzhu RoadBridge | Chengdu Kanghua vs. China Life Insurance | Chengdu Kanghua vs. Shaanxi Broadcast TV | Chengdu Kanghua vs. Tianshan Aluminum Group |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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