Correlation Between Allmed Medical and Lander Sports
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By analyzing existing cross correlation between Allmed Medical Products and Lander Sports Development, you can compare the effects of market volatilities on Allmed Medical and Lander Sports 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 Allmed Medical with a short position of Lander Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allmed Medical and Lander Sports.
Diversification Opportunities for Allmed Medical and Lander Sports
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Allmed and Lander is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Allmed Medical Products and Lander Sports Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lander Sports Development and Allmed Medical 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 Allmed Medical Products are associated (or correlated) with Lander Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lander Sports Development has no effect on the direction of Allmed Medical i.e., Allmed Medical and Lander Sports go up and down completely randomly.
Pair Corralation between Allmed Medical and Lander Sports
Assuming the 90 days trading horizon Allmed Medical is expected to generate 1.81 times less return on investment than Lander Sports. But when comparing it to its historical volatility, Allmed Medical Products is 1.16 times less risky than Lander Sports. It trades about 0.05 of its potential returns per unit of risk. Lander Sports Development is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 232.00 in Lander Sports Development on September 1, 2024 and sell it today you would earn a total of 73.00 from holding Lander Sports Development or generate 31.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allmed Medical Products vs. Lander Sports Development
Performance |
| Timeline |
| Allmed Medical Products |
| Lander Sports Development |
Allmed Medical and Lander Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allmed Medical and Lander Sports
The main advantage of trading using opposite Allmed Medical and Lander Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allmed Medical position performs unexpectedly, Lander Sports 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 Lander Sports will offset losses from the drop in Lander Sports' long position.| Allmed Medical vs. Nanjing Putian Telecommunications | Allmed Medical vs. Shenzhen Hifuture Electric | Allmed Medical vs. Tianjin Realty Development | Allmed Medical vs. Shenyang Huitian Thermal |
| Lander Sports vs. BeiGene | Lander Sports vs. Kweichow Moutai Co | Lander Sports vs. Beijing Roborock Technology | Lander Sports vs. G bits Network Technology |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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