Correlation Between Zhejiang Dahua and Allgens Medical
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By analyzing existing cross correlation between Zhejiang Dahua Technology and Allgens Medical Technology, you can compare the effects of market volatilities on Zhejiang Dahua and Allgens Medical 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 Zhejiang Dahua with a short position of Allgens Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Dahua and Allgens Medical.
Diversification Opportunities for Zhejiang Dahua and Allgens Medical
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhejiang and Allgens is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Dahua Technology and Allgens Medical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allgens Medical Tech and Zhejiang Dahua 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 Zhejiang Dahua Technology are associated (or correlated) with Allgens Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allgens Medical Tech has no effect on the direction of Zhejiang Dahua i.e., Zhejiang Dahua and Allgens Medical go up and down completely randomly.
Pair Corralation between Zhejiang Dahua and Allgens Medical
Assuming the 90 days trading horizon Zhejiang Dahua is expected to generate 13.03 times less return on investment than Allgens Medical. But when comparing it to its historical volatility, Zhejiang Dahua Technology is 1.63 times less risky than Allgens Medical. It trades about 0.01 of its potential returns per unit of risk. Allgens Medical Technology is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,241 in Allgens Medical Technology on September 3, 2024 and sell it today you would earn a total of 474.00 from holding Allgens Medical Technology or generate 38.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Dahua Technology vs. Allgens Medical Technology
Performance |
| Timeline |
| Zhejiang Dahua Technology |
| Allgens Medical Tech |
Zhejiang Dahua and Allgens Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Dahua and Allgens Medical
The main advantage of trading using opposite Zhejiang Dahua and Allgens Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Dahua position performs unexpectedly, Allgens Medical 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 Allgens Medical will offset losses from the drop in Allgens Medical's long position.| Zhejiang Dahua vs. State Grid InformationCommunication | Zhejiang Dahua vs. CICT Mobile Communication | Zhejiang Dahua vs. Shenzhen Kexin Communication | Zhejiang Dahua vs. Tongyu Communication |
| Allgens Medical vs. Chengdu Kanghua Biological | Allgens Medical vs. Beijing Wantai Biological | Allgens Medical vs. Suzhou Novoprotein Scientific | Allgens Medical vs. Aluminum Corp of |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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