Correlation Between Innovative Medical and Ningbo Fangzheng
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By analyzing existing cross correlation between Innovative Medical Management and Ningbo Fangzheng Automobile, you can compare the effects of market volatilities on Innovative Medical and Ningbo Fangzheng 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 Ningbo Fangzheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innovative Medical and Ningbo Fangzheng.
Diversification Opportunities for Innovative Medical and Ningbo Fangzheng
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Innovative and Ningbo is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Innovative Medical Management and Ningbo Fangzheng Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Fangzheng Aut 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 Ningbo Fangzheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Fangzheng Aut has no effect on the direction of Innovative Medical i.e., Innovative Medical and Ningbo Fangzheng go up and down completely randomly.
Pair Corralation between Innovative Medical and Ningbo Fangzheng
Assuming the 90 days trading horizon Innovative Medical Management is expected to generate 1.08 times more return on investment than Ningbo Fangzheng. However, Innovative Medical is 1.08 times more volatile than Ningbo Fangzheng Automobile. It trades about 0.1 of its potential returns per unit of risk. Ningbo Fangzheng Automobile is currently generating about -0.04 per unit of risk. If you would invest 756.00 in Innovative Medical Management on August 30, 2024 and sell it today you would earn a total of 117.00 from holding Innovative Medical Management or generate 15.48% 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. Ningbo Fangzheng Automobile
Performance |
| Timeline |
| Innovative Medical |
| Ningbo Fangzheng Aut |
Innovative Medical and Ningbo Fangzheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innovative Medical and Ningbo Fangzheng
The main advantage of trading using opposite Innovative Medical and Ningbo Fangzheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innovative Medical position performs unexpectedly, Ningbo Fangzheng 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 Ningbo Fangzheng will offset losses from the drop in Ningbo Fangzheng's long position.| Innovative Medical vs. Industrial and Commercial | Innovative Medical vs. China Construction Bank | Innovative Medical vs. Agricultural Bank of | Innovative Medical vs. Bank of China |
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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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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