Correlation Between Allmed Medical and Chison Medical
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By analyzing existing cross correlation between Allmed Medical Products and Chison Medical Technologies, you can compare the effects of market volatilities on Allmed Medical and Chison 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 Chison Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allmed Medical and Chison Medical.
Diversification Opportunities for Allmed Medical and Chison Medical
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Allmed and Chison is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Allmed Medical Products and Chison Medical Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chison Medical Techn 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 Chison Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chison Medical Techn has no effect on the direction of Allmed Medical i.e., Allmed Medical and Chison Medical go up and down completely randomly.
Pair Corralation between Allmed Medical and Chison Medical
Assuming the 90 days trading horizon Allmed Medical Products is expected to generate 0.84 times more return on investment than Chison Medical. However, Allmed Medical Products is 1.19 times less risky than Chison Medical. It trades about 0.05 of its potential returns per unit of risk. Chison Medical Technologies is currently generating about 0.0 per unit of risk. If you would invest 783.00 in Allmed Medical Products on September 1, 2024 and sell it today you would earn a total of 117.00 from holding Allmed Medical Products or generate 14.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allmed Medical Products vs. Chison Medical Technologies
Performance |
| Timeline |
| Allmed Medical Products |
| Chison Medical Techn |
Allmed Medical and Chison Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allmed Medical and Chison Medical
The main advantage of trading using opposite Allmed Medical and Chison Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allmed Medical position performs unexpectedly, Chison 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 Chison Medical will offset losses from the drop in Chison Medical'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 |
| Chison Medical vs. Nanjing Putian Telecommunications | Chison Medical vs. Shenzhen Hifuture Electric | Chison Medical vs. Tianjin Realty Development | Chison Medical vs. Shenyang Huitian Thermal |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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