Correlation Between Innovative Medical and Qijing Machinery
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By analyzing existing cross correlation between Innovative Medical Management and Qijing Machinery, you can compare the effects of market volatilities on Innovative Medical and Qijing Machinery 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 Qijing Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innovative Medical and Qijing Machinery.
Diversification Opportunities for Innovative Medical and Qijing Machinery
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Innovative and Qijing is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Innovative Medical Management and Qijing Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qijing Machinery 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 Qijing Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qijing Machinery has no effect on the direction of Innovative Medical i.e., Innovative Medical and Qijing Machinery go up and down completely randomly.
Pair Corralation between Innovative Medical and Qijing Machinery
Assuming the 90 days trading horizon Innovative Medical Management is expected to generate 1.59 times more return on investment than Qijing Machinery. However, Innovative Medical is 1.59 times more volatile than Qijing Machinery. It trades about 0.04 of its potential returns per unit of risk. Qijing Machinery is currently generating about -0.04 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. Qijing Machinery
Performance |
| Timeline |
| Innovative Medical |
| Qijing Machinery |
Innovative Medical and Qijing Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innovative Medical and Qijing Machinery
The main advantage of trading using opposite Innovative Medical and Qijing Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innovative Medical position performs unexpectedly, Qijing Machinery 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 Qijing Machinery will offset losses from the drop in Qijing Machinery'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 |
| Qijing Machinery vs. Industrial and Commercial | Qijing Machinery vs. China Construction Bank | Qijing Machinery vs. Agricultural Bank of | Qijing Machinery vs. Bank of China |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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