Correlation Between Innovative Medical and Huaneng Lancang
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By analyzing existing cross correlation between Innovative Medical Management and Huaneng Lancang River, you can compare the effects of market volatilities on Innovative Medical and Huaneng Lancang 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 Huaneng Lancang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innovative Medical and Huaneng Lancang.
Diversification Opportunities for Innovative Medical and Huaneng Lancang
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Innovative and Huaneng is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Innovative Medical Management and Huaneng Lancang River in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huaneng Lancang River 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 Huaneng Lancang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huaneng Lancang River has no effect on the direction of Innovative Medical i.e., Innovative Medical and Huaneng Lancang go up and down completely randomly.
Pair Corralation between Innovative Medical and Huaneng Lancang
Assuming the 90 days trading horizon Innovative Medical Management is expected to generate 2.7 times more return on investment than Huaneng Lancang. However, Innovative Medical is 2.7 times more volatile than Huaneng Lancang River. It trades about 0.3 of its potential returns per unit of risk. Huaneng Lancang River is currently generating about 0.02 per unit of risk. If you would invest 824.00 in Innovative Medical Management on September 19, 2024 and sell it today you would earn a total of 201.00 from holding Innovative Medical Management or generate 24.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Innovative Medical Management vs. Huaneng Lancang River
Performance |
| Timeline |
| Innovative Medical |
| Huaneng Lancang River |
Innovative Medical and Huaneng Lancang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innovative Medical and Huaneng Lancang
The main advantage of trading using opposite Innovative Medical and Huaneng Lancang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innovative Medical position performs unexpectedly, Huaneng Lancang 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 Huaneng Lancang will offset losses from the drop in Huaneng Lancang'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 |
| Huaneng Lancang vs. Winner Medical Co | Huaneng Lancang vs. Citic Guoan Wine | Huaneng Lancang vs. Chongqing Brewery Co | Huaneng Lancang 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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