Correlation Between Innovative Medical and Long Yuan
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By analyzing existing cross correlation between Innovative Medical Management and Long Yuan Construction, you can compare the effects of market volatilities on Innovative Medical and Long Yuan 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 Long Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innovative Medical and Long Yuan.
Diversification Opportunities for Innovative Medical and Long Yuan
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Innovative and Long is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Innovative Medical Management and Long Yuan Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Long Yuan Construction 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 Long Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Long Yuan Construction has no effect on the direction of Innovative Medical i.e., Innovative Medical and Long Yuan go up and down completely randomly.
Pair Corralation between Innovative Medical and Long Yuan
Assuming the 90 days trading horizon Innovative Medical Management is expected to generate 1.61 times more return on investment than Long Yuan. However, Innovative Medical is 1.61 times more volatile than Long Yuan Construction. It trades about 0.04 of its potential returns per unit of risk. Long Yuan Construction is currently generating about -0.01 per unit of risk. If you would invest 873.00 in Innovative Medical Management on September 28, 2024 and sell it today you would earn a total of 15.00 from holding Innovative Medical Management or generate 1.72% 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. Long Yuan Construction
Performance |
| Timeline |
| Innovative Medical |
| Long Yuan Construction |
Innovative Medical and Long Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innovative Medical and Long Yuan
The main advantage of trading using opposite Innovative Medical and Long Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innovative Medical position performs unexpectedly, Long Yuan 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 Long Yuan will offset losses from the drop in Long Yuan's long position.| Innovative Medical vs. BYD Co Ltd | Innovative Medical vs. China Mobile Limited | Innovative Medical vs. Agricultural Bank of | Innovative Medical vs. Industrial and Commercial |
| Long Yuan vs. Ming Yang Smart | Long Yuan vs. 159681 | Long Yuan vs. 159005 | Long Yuan vs. Loctek Ergonomic Technology |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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