Correlation Between Allmed Medical and Guangdong Marubi
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By analyzing existing cross correlation between Allmed Medical Products and Guangdong Marubi Biotechnology, you can compare the effects of market volatilities on Allmed Medical and Guangdong Marubi 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 Guangdong Marubi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allmed Medical and Guangdong Marubi.
Diversification Opportunities for Allmed Medical and Guangdong Marubi
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Allmed and Guangdong is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Allmed Medical Products and Guangdong Marubi Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Marubi Bio 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 Guangdong Marubi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Marubi Bio has no effect on the direction of Allmed Medical i.e., Allmed Medical and Guangdong Marubi go up and down completely randomly.
Pair Corralation between Allmed Medical and Guangdong Marubi
Assuming the 90 days trading horizon Allmed Medical Products is expected to generate 1.08 times more return on investment than Guangdong Marubi. However, Allmed Medical is 1.08 times more volatile than Guangdong Marubi Biotechnology. It trades about 0.29 of its potential returns per unit of risk. Guangdong Marubi Biotechnology is currently generating about 0.04 per unit of risk. If you would invest 856.00 in Allmed Medical Products on November 7, 2024 and sell it today you would earn a total of 101.00 from holding Allmed Medical Products or generate 11.8% 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. Guangdong Marubi Biotechnology
Performance |
| Timeline |
| Allmed Medical Products |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| Guangdong Marubi Bio |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
Allmed Medical and Guangdong Marubi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allmed Medical and Guangdong Marubi
The main advantage of trading using opposite Allmed Medical and Guangdong Marubi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allmed Medical position performs unexpectedly, Guangdong Marubi 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 Guangdong Marubi will offset losses from the drop in Guangdong Marubi's long position.The idea behind Allmed Medical Products and Guangdong Marubi Biotechnology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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