Correlation Between Innovative Medical and Shanghai Lingyun
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By analyzing existing cross correlation between Innovative Medical Management and Shanghai Lingyun Industries, you can compare the effects of market volatilities on Innovative Medical and Shanghai Lingyun 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 Shanghai Lingyun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innovative Medical and Shanghai Lingyun.
Diversification Opportunities for Innovative Medical and Shanghai Lingyun
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Innovative and Shanghai is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Innovative Medical Management and Shanghai Lingyun Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Lingyun Ind 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 Shanghai Lingyun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Lingyun Ind has no effect on the direction of Innovative Medical i.e., Innovative Medical and Shanghai Lingyun go up and down completely randomly.
Pair Corralation between Innovative Medical and Shanghai Lingyun
Assuming the 90 days trading horizon Innovative Medical is expected to generate 2.09 times less return on investment than Shanghai Lingyun. But when comparing it to its historical volatility, Innovative Medical Management is 1.44 times less risky than Shanghai Lingyun. It trades about 0.11 of its potential returns per unit of risk. Shanghai Lingyun Industries is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 17.00 in Shanghai Lingyun Industries on September 13, 2024 and sell it today you would earn a total of 22.00 from holding Shanghai Lingyun Industries or generate 129.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Innovative Medical Management vs. Shanghai Lingyun Industries
Performance |
| Timeline |
| Innovative Medical |
| Shanghai Lingyun Ind |
Innovative Medical and Shanghai Lingyun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innovative Medical and Shanghai Lingyun
The main advantage of trading using opposite Innovative Medical and Shanghai Lingyun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innovative Medical position performs unexpectedly, Shanghai Lingyun 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 Shanghai Lingyun will offset losses from the drop in Shanghai Lingyun'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 |
| Shanghai Lingyun vs. Industrial Bank Co | Shanghai Lingyun vs. Sanbo Hospital Management | Shanghai Lingyun vs. Peoples Insurance of | Shanghai Lingyun vs. Guosheng Financial Holding |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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