Correlation Between Allmed Medical and Chahua Modern
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By analyzing existing cross correlation between Allmed Medical Products and Chahua Modern Housewares, you can compare the effects of market volatilities on Allmed Medical and Chahua Modern 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 Chahua Modern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allmed Medical and Chahua Modern.
Diversification Opportunities for Allmed Medical and Chahua Modern
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Allmed and Chahua is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Allmed Medical Products and Chahua Modern Housewares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chahua Modern Housewares 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 Chahua Modern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chahua Modern Housewares has no effect on the direction of Allmed Medical i.e., Allmed Medical and Chahua Modern go up and down completely randomly.
Pair Corralation between Allmed Medical and Chahua Modern
Assuming the 90 days trading horizon Allmed Medical Products is expected to under-perform the Chahua Modern. But the stock apears to be less risky and, when comparing its historical volatility, Allmed Medical Products is 1.56 times less risky than Chahua Modern. The stock trades about -0.02 of its potential returns per unit of risk. The Chahua Modern Housewares is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 819.00 in Chahua Modern Housewares on October 18, 2024 and sell it today you would earn a total of 1,292 from holding Chahua Modern Housewares or generate 157.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allmed Medical Products vs. Chahua Modern Housewares
Performance |
| Timeline |
| Allmed Medical Products |
| Chahua Modern Housewares |
Allmed Medical and Chahua Modern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allmed Medical and Chahua Modern
The main advantage of trading using opposite Allmed Medical and Chahua Modern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allmed Medical position performs unexpectedly, Chahua Modern 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 Chahua Modern will offset losses from the drop in Chahua Modern's long position.| Allmed Medical vs. Jiangsu GDK Biotechnology | Allmed Medical vs. Maccura Biotechnology Co | Allmed Medical vs. Tibet Huayu Mining | Allmed Medical vs. Bloomage Biotechnology Corp |
| Chahua Modern vs. Zhejiang Yongjin Metal | Chahua Modern vs. Rising Nonferrous Metals | Chahua Modern vs. Xinjiang Communications Construction | Chahua Modern vs. Eastern Communications 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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