Correlation Between Chengdu Kanghua and Innovative Medical
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By analyzing existing cross correlation between Chengdu Kanghua Biological and Innovative Medical Management, you can compare the effects of market volatilities on Chengdu Kanghua 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 Chengdu Kanghua with a short position of Innovative Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Kanghua and Innovative Medical.
Diversification Opportunities for Chengdu Kanghua and Innovative Medical
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chengdu and Innovative is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Kanghua Biological and Innovative Medical Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovative Medical and Chengdu Kanghua 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 Chengdu Kanghua Biological 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 Chengdu Kanghua i.e., Chengdu Kanghua and Innovative Medical go up and down completely randomly.
Pair Corralation between Chengdu Kanghua and Innovative Medical
Assuming the 90 days trading horizon Chengdu Kanghua Biological is expected to under-perform the Innovative Medical. But the stock apears to be less risky and, when comparing its historical volatility, Chengdu Kanghua Biological is 1.72 times less risky than Innovative Medical. The stock trades about -0.06 of its potential returns per unit of risk. The Innovative Medical Management is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 864.00 in Innovative Medical Management on September 1, 2024 and sell it today you would earn a total of 25.00 from holding Innovative Medical Management or generate 2.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Kanghua Biological vs. Innovative Medical Management
Performance |
| Timeline |
| Chengdu Kanghua Biol |
| Innovative Medical |
Chengdu Kanghua and Innovative Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Kanghua and Innovative Medical
The main advantage of trading using opposite Chengdu Kanghua and Innovative Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Kanghua 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.| Chengdu Kanghua vs. Innovative Medical Management | Chengdu Kanghua vs. Tongyu Communication | Chengdu Kanghua vs. AVIC Fund Management | Chengdu Kanghua vs. Guangdong Shenglu Telecommunication |
| Innovative Medical vs. Xiamen Bank Co | Innovative Medical vs. Longxing Chemical Stock | Innovative Medical vs. Shenwu Energy Saving | Innovative Medical vs. Agricultural Bank of |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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