Correlation Between Ningbo MedicalSystem and Touchstone International
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By analyzing existing cross correlation between Ningbo MedicalSystem Biotechnology and Touchstone International Medical, you can compare the effects of market volatilities on Ningbo MedicalSystem and Touchstone International 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 Ningbo MedicalSystem with a short position of Touchstone International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo MedicalSystem and Touchstone International.
Diversification Opportunities for Ningbo MedicalSystem and Touchstone International
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ningbo and Touchstone is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo MedicalSystem Biotechno and Touchstone International Medic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone International and Ningbo MedicalSystem 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 Ningbo MedicalSystem Biotechnology are associated (or correlated) with Touchstone International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone International has no effect on the direction of Ningbo MedicalSystem i.e., Ningbo MedicalSystem and Touchstone International go up and down completely randomly.
Pair Corralation between Ningbo MedicalSystem and Touchstone International
Assuming the 90 days trading horizon Ningbo MedicalSystem is expected to generate 1.3 times less return on investment than Touchstone International. In addition to that, Ningbo MedicalSystem is 1.08 times more volatile than Touchstone International Medical. It trades about 0.13 of its total potential returns per unit of risk. Touchstone International Medical is currently generating about 0.19 per unit of volatility. If you would invest 1,457 in Touchstone International Medical on September 4, 2024 and sell it today you would earn a total of 548.00 from holding Touchstone International Medical or generate 37.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo MedicalSystem Biotechno vs. Touchstone International Medic
Performance |
| Timeline |
| Ningbo MedicalSystem |
| Touchstone International |
Ningbo MedicalSystem and Touchstone International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo MedicalSystem and Touchstone International
The main advantage of trading using opposite Ningbo MedicalSystem and Touchstone International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo MedicalSystem position performs unexpectedly, Touchstone International 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 Touchstone International will offset losses from the drop in Touchstone International's long position.| Ningbo MedicalSystem vs. Kweichow Moutai Co | Ningbo MedicalSystem vs. Shenzhen Mindray Bio Medical | Ningbo MedicalSystem vs. Jiangsu Pacific Quartz | Ningbo MedicalSystem vs. G bits Network Technology |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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