Correlation Between Goertek and Sino Medical
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By analyzing existing cross correlation between Goertek and Sino Medical Sciences, you can compare the effects of market volatilities on Goertek and Sino 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 Goertek with a short position of Sino Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goertek and Sino Medical.
Diversification Opportunities for Goertek and Sino Medical
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Goertek and Sino is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Goertek and Sino Medical Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sino Medical Sciences and Goertek 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 Goertek are associated (or correlated) with Sino Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sino Medical Sciences has no effect on the direction of Goertek i.e., Goertek and Sino Medical go up and down completely randomly.
Pair Corralation between Goertek and Sino Medical
Assuming the 90 days trading horizon Goertek is expected to generate 1.94 times less return on investment than Sino Medical. But when comparing it to its historical volatility, Goertek is 1.32 times less risky than Sino Medical. It trades about 0.08 of its potential returns per unit of risk. Sino Medical Sciences is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 975.00 in Sino Medical Sciences on August 31, 2024 and sell it today you would earn a total of 101.00 from holding Sino Medical Sciences or generate 10.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goertek vs. Sino Medical Sciences
Performance |
| Timeline |
| Goertek |
| Sino Medical Sciences |
Goertek and Sino Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goertek and Sino Medical
The main advantage of trading using opposite Goertek and Sino Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goertek position performs unexpectedly, Sino 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 Sino Medical will offset losses from the drop in Sino Medical's long position.| Goertek vs. Sino Medical Sciences | Goertek vs. Cowealth Medical China | Goertek vs. Blue Sail Medical | Goertek vs. Guangzhou Boji Medical |
| Sino Medical vs. PetroChina Co Ltd | Sino Medical vs. China Mobile Limited | Sino Medical vs. Ping An Insurance | Sino Medical vs. China Petroleum Chemical |
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 CEOs Directory module to screen CEOs from public companies around the world.
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