Correlation Between Tianjin Pengling and Chison Medical
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By analyzing existing cross correlation between Tianjin Pengling Rubber and Chison Medical Technologies, you can compare the effects of market volatilities on Tianjin Pengling 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 Tianjin Pengling with a short position of Chison Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Pengling and Chison Medical.
Diversification Opportunities for Tianjin Pengling and Chison Medical
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tianjin and Chison is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Pengling Rubber 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 Tianjin Pengling 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 Tianjin Pengling Rubber 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 Tianjin Pengling i.e., Tianjin Pengling and Chison Medical go up and down completely randomly.
Pair Corralation between Tianjin Pengling and Chison Medical
Assuming the 90 days trading horizon Tianjin Pengling is expected to generate 7.59 times less return on investment than Chison Medical. But when comparing it to its historical volatility, Tianjin Pengling Rubber is 1.34 times less risky than Chison Medical. It trades about 0.01 of its potential returns per unit of risk. Chison Medical Technologies is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,721 in Chison Medical Technologies on September 13, 2024 and sell it today you would earn a total of 98.00 from holding Chison Medical Technologies or generate 3.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Pengling Rubber vs. Chison Medical Technologies
Performance |
| Timeline |
| Tianjin Pengling Rubber |
| Chison Medical Techn |
Tianjin Pengling and Chison Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Pengling and Chison Medical
The main advantage of trading using opposite Tianjin Pengling and Chison Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Pengling 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.| Tianjin Pengling vs. New China Life | Tianjin Pengling vs. Ming Yang Smart | Tianjin Pengling vs. 159681 | Tianjin Pengling vs. 159005 |
| Chison Medical vs. Industrial and Commercial | Chison Medical vs. Kweichow Moutai Co | Chison Medical vs. Agricultural Bank of | Chison Medical vs. China Mobile Limited |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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