Correlation Between Allmed Medical and Beijing Wandong
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By analyzing existing cross correlation between Allmed Medical Products and Beijing Wandong Medical, you can compare the effects of market volatilities on Allmed Medical and Beijing Wandong 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 Beijing Wandong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allmed Medical and Beijing Wandong.
Diversification Opportunities for Allmed Medical and Beijing Wandong
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Allmed and Beijing is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Allmed Medical Products and Beijing Wandong Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Wandong Medical 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 Beijing Wandong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Wandong Medical has no effect on the direction of Allmed Medical i.e., Allmed Medical and Beijing Wandong go up and down completely randomly.
Pair Corralation between Allmed Medical and Beijing Wandong
Assuming the 90 days trading horizon Allmed Medical is expected to generate 1.31 times less return on investment than Beijing Wandong. In addition to that, Allmed Medical is 1.11 times more volatile than Beijing Wandong Medical. It trades about 0.05 of its total potential returns per unit of risk. Beijing Wandong Medical is currently generating about 0.08 per unit of volatility. If you would invest 1,392 in Beijing Wandong Medical on September 1, 2024 and sell it today you would earn a total of 321.00 from holding Beijing Wandong Medical or generate 23.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.19% |
| Values | Daily Returns |
Allmed Medical Products vs. Beijing Wandong Medical
Performance |
| Timeline |
| Allmed Medical Products |
| Beijing Wandong Medical |
Allmed Medical and Beijing Wandong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allmed Medical and Beijing Wandong
The main advantage of trading using opposite Allmed Medical and Beijing Wandong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allmed Medical position performs unexpectedly, Beijing Wandong 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 Beijing Wandong will offset losses from the drop in Beijing Wandong's 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 |
| Beijing Wandong vs. Jiangxi Naipu Mining | Beijing Wandong vs. Anhui Huilong Agricultural | Beijing Wandong vs. Xinjiang Baodi Mining | Beijing Wandong vs. Jinhui Liquor 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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