Correlation Between Guangdong Shenglu and Innovative Medical
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By analyzing existing cross correlation between Guangdong Shenglu Telecommunication and Innovative Medical Management, you can compare the effects of market volatilities on Guangdong Shenglu and Innovative 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 Guangdong Shenglu with a short position of Innovative Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Shenglu and Innovative Medical.
Diversification Opportunities for Guangdong Shenglu and Innovative Medical
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangdong and Innovative is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Shenglu Telecommunic and Innovative Medical Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovative Medical and Guangdong Shenglu 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 Guangdong Shenglu Telecommunication are associated (or correlated) with Innovative Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovative Medical has no effect on the direction of Guangdong Shenglu i.e., Guangdong Shenglu and Innovative Medical go up and down completely randomly.
Pair Corralation between Guangdong Shenglu and Innovative Medical
Assuming the 90 days trading horizon Guangdong Shenglu Telecommunication is expected to under-perform the Innovative Medical. But the stock apears to be less risky and, when comparing its historical volatility, Guangdong Shenglu Telecommunication is 1.56 times less risky than Innovative Medical. The stock trades about -0.14 of its potential returns per unit of risk. The Innovative Medical Management is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 838.00 in Innovative Medical Management on October 26, 2024 and sell it today you would lose (14.00) from holding Innovative Medical Management or give up 1.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Shenglu Telecommunic vs. Innovative Medical Management
Performance |
| Timeline |
| Guangdong Shenglu |
| Innovative Medical |
Guangdong Shenglu and Innovative Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Shenglu and Innovative Medical
The main advantage of trading using opposite Guangdong Shenglu and Innovative Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Shenglu position performs unexpectedly, Innovative 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 Innovative Medical will offset losses from the drop in Innovative Medical's long position.| Guangdong Shenglu vs. Bus Online Co | Guangdong Shenglu vs. Holitech Technology Co | Guangdong Shenglu vs. Gome Telecom Equipment | Guangdong Shenglu vs. Cultural Investment Holdings |
| Innovative Medical vs. Tianjin Ruixin Technology | Innovative Medical vs. UCloud Technology Co | Innovative Medical vs. Inspur Software Co | Innovative Medical vs. Dhc Software Co |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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