Correlation Between Contec Medical and Beijing Sinnet
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By analyzing existing cross correlation between Contec Medical Systems and Beijing Sinnet Technology, you can compare the effects of market volatilities on Contec Medical and Beijing Sinnet 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 Contec Medical with a short position of Beijing Sinnet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contec Medical and Beijing Sinnet.
Diversification Opportunities for Contec Medical and Beijing Sinnet
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Contec and Beijing is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Contec Medical Systems and Beijing Sinnet Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Sinnet Technology and Contec Medical 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 Contec Medical Systems are associated (or correlated) with Beijing Sinnet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Sinnet Technology has no effect on the direction of Contec Medical i.e., Contec Medical and Beijing Sinnet go up and down completely randomly.
Pair Corralation between Contec Medical and Beijing Sinnet
Assuming the 90 days trading horizon Contec Medical Systems is expected to generate 0.86 times more return on investment than Beijing Sinnet. However, Contec Medical Systems is 1.16 times less risky than Beijing Sinnet. It trades about -0.11 of its potential returns per unit of risk. Beijing Sinnet Technology is currently generating about -0.14 per unit of risk. If you would invest 1,725 in Contec Medical Systems on September 13, 2024 and sell it today you would lose (98.00) from holding Contec Medical Systems or give up 5.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Contec Medical Systems vs. Beijing Sinnet Technology
Performance |
| Timeline |
| Contec Medical Systems |
| Beijing Sinnet Technology |
Contec Medical and Beijing Sinnet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contec Medical and Beijing Sinnet
The main advantage of trading using opposite Contec Medical and Beijing Sinnet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contec Medical position performs unexpectedly, Beijing Sinnet 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 Beijing Sinnet will offset losses from the drop in Beijing Sinnet's long position.| Contec Medical vs. Industrial and Commercial | Contec Medical vs. Kweichow Moutai Co | Contec Medical vs. Agricultural Bank of | Contec Medical vs. China Mobile Limited |
| Beijing Sinnet vs. Tsingtao Brewery Co | Beijing Sinnet vs. Suzhou Douson Drilling | Beijing Sinnet vs. AVIC Fund Management | Beijing Sinnet vs. Jiujiang Shanshui 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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