Correlation Between Guangdong Transtek and Zhongzhu Medical
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By analyzing existing cross correlation between Guangdong Transtek Medical and Zhongzhu Medical Holdings, you can compare the effects of market volatilities on Guangdong Transtek and Zhongzhu 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 Guangdong Transtek with a short position of Zhongzhu Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Transtek and Zhongzhu Medical.
Diversification Opportunities for Guangdong Transtek and Zhongzhu Medical
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangdong and Zhongzhu is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Transtek Medical and Zhongzhu Medical Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongzhu Medical Holdings and Guangdong Transtek 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 Guangdong Transtek Medical are associated (or correlated) with Zhongzhu Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongzhu Medical Holdings has no effect on the direction of Guangdong Transtek i.e., Guangdong Transtek and Zhongzhu Medical go up and down completely randomly.
Pair Corralation between Guangdong Transtek and Zhongzhu Medical
Assuming the 90 days trading horizon Guangdong Transtek Medical is expected to under-perform the Zhongzhu Medical. In addition to that, Guangdong Transtek is 1.38 times more volatile than Zhongzhu Medical Holdings. It trades about -0.15 of its total potential returns per unit of risk. Zhongzhu Medical Holdings is currently generating about -0.11 per unit of volatility. If you would invest 132.00 in Zhongzhu Medical Holdings on November 3, 2024 and sell it today you would lose (6.00) from holding Zhongzhu Medical Holdings or give up 4.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Transtek Medical vs. Zhongzhu Medical Holdings
Performance |
| Timeline |
| Guangdong Transtek |
| Zhongzhu Medical Holdings |
Guangdong Transtek and Zhongzhu Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Transtek and Zhongzhu Medical
The main advantage of trading using opposite Guangdong Transtek and Zhongzhu Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Transtek position performs unexpectedly, Zhongzhu 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 Zhongzhu Medical will offset losses from the drop in Zhongzhu Medical's long position.| Guangdong Transtek vs. Linewell Software Co | Guangdong Transtek vs. Eastern Communications Co | Guangdong Transtek vs. Bingo Software Co | Guangdong Transtek vs. Dareway Software Co |
| Zhongzhu Medical vs. Changzhou Evergreen Technology | Zhongzhu Medical vs. Keda Clean Energy | Zhongzhu Medical vs. Youyou Foods Co | Zhongzhu Medical vs. Eyebright Medical 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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