Correlation Between Allmed Medical and Zhongzhu Medical
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By analyzing existing cross correlation between Allmed Medical Products and Zhongzhu Medical Holdings, you can compare the effects of market volatilities on Allmed Medical and Zhongzhu 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 Allmed Medical with a short position of Zhongzhu Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allmed Medical and Zhongzhu Medical.
Diversification Opportunities for Allmed Medical and Zhongzhu Medical
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Allmed and Zhongzhu is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Allmed Medical Products and Zhongzhu Medical Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongzhu Medical Holdings 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 Zhongzhu Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongzhu Medical Holdings has no effect on the direction of Allmed Medical i.e., Allmed Medical and Zhongzhu Medical go up and down completely randomly.
Pair Corralation between Allmed Medical and Zhongzhu Medical
Assuming the 90 days trading horizon Allmed Medical Products is expected to generate 1.11 times more return on investment than Zhongzhu Medical. However, Allmed Medical is 1.11 times more volatile than Zhongzhu Medical Holdings. It trades about 0.09 of its potential returns per unit of risk. Zhongzhu Medical Holdings is currently generating about -0.07 per unit of risk. If you would invest 844.00 in Allmed Medical Products on November 6, 2024 and sell it today you would earn a total of 113.00 from holding Allmed Medical Products or generate 13.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allmed Medical Products vs. Zhongzhu Medical Holdings
Performance |
| Timeline |
| Allmed Medical Products |
| Zhongzhu Medical Holdings |
Allmed Medical and Zhongzhu Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allmed Medical and Zhongzhu Medical
The main advantage of trading using opposite Allmed Medical and Zhongzhu Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allmed Medical position performs unexpectedly, Zhongzhu 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 Zhongzhu Medical will offset losses from the drop in Zhongzhu Medical's long position.| Allmed Medical vs. Northern United Publishing | Allmed Medical vs. Xinjiang Baodi Mining | Allmed Medical vs. Beijing Kaiwen Education | Allmed Medical vs. China Publishing Media |
| Zhongzhu Medical vs. Yili Chuanning Biotechnology | Zhongzhu Medical vs. Anhui Deli Household | Zhongzhu Medical vs. Fujian Wanchen Biotechnology | Zhongzhu Medical vs. Hubei Tech Semiconductors |
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 Stocks Directory module to find actively traded stocks across global markets.
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