Correlation Between Innovative Medical and Weihai Honglin
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By analyzing existing cross correlation between Innovative Medical Management and Weihai Honglin Electronic, you can compare the effects of market volatilities on Innovative Medical and Weihai Honglin 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 Weihai Honglin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innovative Medical and Weihai Honglin.
Diversification Opportunities for Innovative Medical and Weihai Honglin
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Innovative and Weihai is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Innovative Medical Management and Weihai Honglin Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weihai Honglin Electronic 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 Weihai Honglin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weihai Honglin Electronic has no effect on the direction of Innovative Medical i.e., Innovative Medical and Weihai Honglin go up and down completely randomly.
Pair Corralation between Innovative Medical and Weihai Honglin
Assuming the 90 days trading horizon Innovative Medical Management is expected to under-perform the Weihai Honglin. In addition to that, Innovative Medical is 1.29 times more volatile than Weihai Honglin Electronic. It trades about -0.04 of its total potential returns per unit of risk. Weihai Honglin Electronic is currently generating about 0.12 per unit of volatility. If you would invest 1,387 in Weihai Honglin Electronic on November 1, 2024 and sell it today you would earn a total of 220.00 from holding Weihai Honglin Electronic or generate 15.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Innovative Medical Management vs. Weihai Honglin Electronic
Performance |
| Timeline |
| Innovative Medical |
| Weihai Honglin Electronic |
Innovative Medical and Weihai Honglin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innovative Medical and Weihai Honglin
The main advantage of trading using opposite Innovative Medical and Weihai Honglin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innovative Medical position performs unexpectedly, Weihai Honglin 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 Weihai Honglin will offset losses from the drop in Weihai Honglin's long position.| Innovative Medical vs. Anhui Fuhuang Steel | Innovative Medical vs. Eastroc Beverage Group | Innovative Medical vs. Anji Foodstuff Co | Innovative Medical vs. Shenzhen MYS Environmental |
| Weihai Honglin vs. Eyebright Medical Technology | Weihai Honglin vs. Guangzhou KingTeller Technology | Weihai Honglin vs. Tianjin Ruixin Technology | Weihai Honglin vs. Innovative Medical Management |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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