Correlation Between Andon Health and Ningbo David
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By analyzing existing cross correlation between Andon Health Co and Ningbo David Medical, you can compare the effects of market volatilities on Andon Health and Ningbo David 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 Andon Health with a short position of Ningbo David. Check out your portfolio center. Please also check ongoing floating volatility patterns of Andon Health and Ningbo David.
Diversification Opportunities for Andon Health and Ningbo David
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Andon and Ningbo is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Andon Health Co and Ningbo David Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo David Medical and Andon Health 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 Andon Health Co are associated (or correlated) with Ningbo David. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo David Medical has no effect on the direction of Andon Health i.e., Andon Health and Ningbo David go up and down completely randomly.
Pair Corralation between Andon Health and Ningbo David
Assuming the 90 days trading horizon Andon Health Co is expected to generate 0.6 times more return on investment than Ningbo David. However, Andon Health Co is 1.67 times less risky than Ningbo David. It trades about -0.23 of its potential returns per unit of risk. Ningbo David Medical is currently generating about -0.22 per unit of risk. If you would invest 4,228 in Andon Health Co on October 25, 2024 and sell it today you would lose (219.00) from holding Andon Health Co or give up 5.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Andon Health Co vs. Ningbo David Medical
Performance |
| Timeline |
| Andon Health |
| Ningbo David Medical |
Andon Health and Ningbo David Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Andon Health and Ningbo David
The main advantage of trading using opposite Andon Health and Ningbo David positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Andon Health position performs unexpectedly, Ningbo David 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 Ningbo David will offset losses from the drop in Ningbo David's long position.| Andon Health vs. Agricultural Bank of | Andon Health vs. Industrial and Commercial | Andon Health vs. Bank of China | Andon Health vs. China Construction Bank |
| Ningbo David vs. Andon Health Co | Ningbo David vs. Fujian Wanchen Biotechnology | Ningbo David vs. Shandong Sinoglory Health | Ningbo David vs. Lotus Health Group |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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