Correlation Between Anhui Huilong and Innovative Medical
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By analyzing existing cross correlation between Anhui Huilong Agricultural and Innovative Medical Management, you can compare the effects of market volatilities on Anhui Huilong 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 Anhui Huilong with a short position of Innovative Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huilong and Innovative Medical.
Diversification Opportunities for Anhui Huilong and Innovative Medical
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anhui and Innovative is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huilong Agricultural and Innovative Medical Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovative Medical and Anhui Huilong 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 Anhui Huilong Agricultural 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 Anhui Huilong i.e., Anhui Huilong and Innovative Medical go up and down completely randomly.
Pair Corralation between Anhui Huilong and Innovative Medical
Assuming the 90 days trading horizon Anhui Huilong Agricultural is expected to under-perform the Innovative Medical. But the stock apears to be less risky and, when comparing its historical volatility, Anhui Huilong Agricultural is 1.58 times less risky than Innovative Medical. The stock trades about -0.03 of its potential returns per unit of risk. The Innovative Medical Management is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 688.00 in Innovative Medical Management on October 11, 2024 and sell it today you would earn a total of 224.00 from holding Innovative Medical Management or generate 32.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Huilong Agricultural vs. Innovative Medical Management
Performance |
| Timeline |
| Anhui Huilong Agricu |
| Innovative Medical |
Anhui Huilong and Innovative Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huilong and Innovative Medical
The main advantage of trading using opposite Anhui Huilong and Innovative Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huilong 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.| Anhui Huilong vs. Lotus Health Group | Anhui Huilong vs. Sinomach General Machinery | Anhui Huilong vs. PKU HealthCare Corp | Anhui Huilong vs. Heren Health 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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