Correlation Between Allmed Medical and Konfoong Materials
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By analyzing existing cross correlation between Allmed Medical Products and Konfoong Materials International, you can compare the effects of market volatilities on Allmed Medical and Konfoong Materials 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 Konfoong Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allmed Medical and Konfoong Materials.
Diversification Opportunities for Allmed Medical and Konfoong Materials
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Allmed and Konfoong is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Allmed Medical Products and Konfoong Materials Internation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Konfoong Materials 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 Konfoong Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Konfoong Materials has no effect on the direction of Allmed Medical i.e., Allmed Medical and Konfoong Materials go up and down completely randomly.
Pair Corralation between Allmed Medical and Konfoong Materials
Assuming the 90 days trading horizon Allmed Medical Products is expected to generate 0.96 times more return on investment than Konfoong Materials. However, Allmed Medical Products is 1.04 times less risky than Konfoong Materials. It trades about 0.16 of its potential returns per unit of risk. Konfoong Materials International is currently generating about -0.06 per unit of risk. If you would invest 889.00 in Allmed Medical Products on October 31, 2024 and sell it today you would earn a total of 68.00 from holding Allmed Medical Products or generate 7.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allmed Medical Products vs. Konfoong Materials Internation
Performance |
| Timeline |
| Allmed Medical Products |
| Konfoong Materials |
Allmed Medical and Konfoong Materials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allmed Medical and Konfoong Materials
The main advantage of trading using opposite Allmed Medical and Konfoong Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allmed Medical position performs unexpectedly, Konfoong Materials 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 Konfoong Materials will offset losses from the drop in Konfoong Materials' long position.| Allmed Medical vs. Beijing Kaiwen Education | Allmed Medical vs. Guangzhou Zhujiang Brewery | Allmed Medical vs. Jiangsu Yanghe Brewery | Allmed Medical vs. Eastroc Beverage 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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