Correlation Between Shenzhen Inovance and Innovative Medical
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By analyzing existing cross correlation between Shenzhen Inovance Tech and Innovative Medical Management, you can compare the effects of market volatilities on Shenzhen Inovance and Innovative 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 Shenzhen Inovance with a short position of Innovative Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Inovance and Innovative Medical.
Diversification Opportunities for Shenzhen Inovance and Innovative Medical
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and Innovative is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Inovance Tech and Innovative Medical Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovative Medical and Shenzhen Inovance 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 Shenzhen Inovance Tech are associated (or correlated) with Innovative Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovative Medical has no effect on the direction of Shenzhen Inovance i.e., Shenzhen Inovance and Innovative Medical go up and down completely randomly.
Pair Corralation between Shenzhen Inovance and Innovative Medical
Assuming the 90 days trading horizon Shenzhen Inovance is expected to generate 180.29 times less return on investment than Innovative Medical. But when comparing it to its historical volatility, Shenzhen Inovance Tech is 1.53 times less risky than Innovative Medical. It trades about 0.0 of its potential returns per unit of risk. Innovative Medical Management is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 669.00 in Innovative Medical Management on September 28, 2024 and sell it today you would earn a total of 239.00 from holding Innovative Medical Management or generate 35.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Inovance Tech vs. Innovative Medical Management
Performance |
| Timeline |
| Shenzhen Inovance Tech |
| Innovative Medical |
Shenzhen Inovance and Innovative Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Inovance and Innovative Medical
The main advantage of trading using opposite Shenzhen Inovance and Innovative Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Inovance position performs unexpectedly, Innovative 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 Innovative Medical will offset losses from the drop in Innovative Medical's long position.| Shenzhen Inovance vs. BeiGene | Shenzhen Inovance vs. Kweichow Moutai Co | Shenzhen Inovance vs. Beijing Roborock Technology | Shenzhen Inovance vs. G bits Network Technology |
| Innovative Medical vs. BYD Co Ltd | Innovative Medical vs. China Mobile Limited | Innovative Medical vs. Agricultural Bank of | Innovative Medical vs. Industrial and Commercial |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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