Correlation Between Allmed Medical and Pengxin International
Specify exactly 2 symbols:
By analyzing existing cross correlation between Allmed Medical Products and Pengxin International Mining, you can compare the effects of market volatilities on Allmed Medical and Pengxin International 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 Pengxin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allmed Medical and Pengxin International.
Diversification Opportunities for Allmed Medical and Pengxin International
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Allmed and Pengxin is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Allmed Medical Products and Pengxin International Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pengxin International 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 Pengxin International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pengxin International has no effect on the direction of Allmed Medical i.e., Allmed Medical and Pengxin International go up and down completely randomly.
Pair Corralation between Allmed Medical and Pengxin International
Assuming the 90 days trading horizon Allmed Medical Products is expected to generate 1.02 times more return on investment than Pengxin International. However, Allmed Medical is 1.02 times more volatile than Pengxin International Mining. It trades about 0.14 of its potential returns per unit of risk. Pengxin International Mining is currently generating about -0.04 per unit of risk. If you would invest 825.00 in Allmed Medical Products on September 2, 2024 and sell it today you would earn a total of 75.00 from holding Allmed Medical Products or generate 9.09% 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. Pengxin International Mining
Performance |
| Timeline |
| Allmed Medical Products |
| Pengxin International |
Allmed Medical and Pengxin International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allmed Medical and Pengxin International
The main advantage of trading using opposite Allmed Medical and Pengxin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allmed Medical position performs unexpectedly, Pengxin International 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 Pengxin International will offset losses from the drop in Pengxin International's long position.| Allmed Medical vs. Shanghai Sanyou Medical | Allmed Medical vs. Ningxia Younglight Chemicals | Allmed Medical vs. Zhejiang Yongjin Metal | Allmed Medical vs. Anhui Transport Consulting |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Commodity Directory Find actively traded commodities issued by global exchanges |