Correlation Between Innovative Medical and China Construction
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By analyzing existing cross correlation between Innovative Medical Management and China Construction Bank, you can compare the effects of market volatilities on Innovative Medical and China Construction 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 China Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innovative Medical and China Construction.
Diversification Opportunities for Innovative Medical and China Construction
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Innovative and China is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Innovative Medical Management and China Construction Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Construction Bank 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 China Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Construction Bank has no effect on the direction of Innovative Medical i.e., Innovative Medical and China Construction go up and down completely randomly.
Pair Corralation between Innovative Medical and China Construction
Assuming the 90 days trading horizon Innovative Medical Management is expected to generate 2.22 times more return on investment than China Construction. However, Innovative Medical is 2.22 times more volatile than China Construction Bank. It trades about 0.01 of its potential returns per unit of risk. China Construction Bank is currently generating about -0.09 per unit of risk. If you would invest 834.00 in Innovative Medical Management on October 30, 2024 and sell it today you would lose (6.00) from holding Innovative Medical Management or give up 0.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Innovative Medical Management vs. China Construction Bank
Performance |
| Timeline |
| Innovative Medical |
| China Construction Bank |
Innovative Medical and China Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innovative Medical and China Construction
The main advantage of trading using opposite Innovative Medical and China Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innovative Medical position performs unexpectedly, China Construction 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 China Construction will offset losses from the drop in China Construction's long position.| Innovative Medical vs. Chongqing Sulian Plastic | Innovative Medical vs. TongFu Microelectronics Co | Innovative Medical vs. Ningbo Tip Rubber | Innovative Medical vs. Jiangxi Lianchuang Opto electronic |
| China Construction vs. Beingmate Baby Child | China Construction vs. Runjian Communication Co | China Construction vs. Fiberhome Telecommunication Technologies | China Construction vs. AUPU Home Style |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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