Correlation Between Contec Medical and Guangzhou Shangpin
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By analyzing existing cross correlation between Contec Medical Systems and Guangzhou Shangpin Home, you can compare the effects of market volatilities on Contec Medical and Guangzhou Shangpin 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 Guangzhou Shangpin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contec Medical and Guangzhou Shangpin.
Diversification Opportunities for Contec Medical and Guangzhou Shangpin
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Contec and Guangzhou is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Contec Medical Systems and Guangzhou Shangpin Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Shangpin Home 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 Guangzhou Shangpin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Shangpin Home has no effect on the direction of Contec Medical i.e., Contec Medical and Guangzhou Shangpin go up and down completely randomly.
Pair Corralation between Contec Medical and Guangzhou Shangpin
Assuming the 90 days trading horizon Contec Medical is expected to generate 7.19 times less return on investment than Guangzhou Shangpin. In addition to that, Contec Medical is 1.03 times more volatile than Guangzhou Shangpin Home. It trades about 0.05 of its total potential returns per unit of risk. Guangzhou Shangpin Home is currently generating about 0.35 per unit of volatility. If you would invest 1,293 in Guangzhou Shangpin Home on September 4, 2024 and sell it today you would earn a total of 242.00 from holding Guangzhou Shangpin Home or generate 18.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Contec Medical Systems vs. Guangzhou Shangpin Home
Performance |
| Timeline |
| Contec Medical Systems |
| Guangzhou Shangpin Home |
Contec Medical and Guangzhou Shangpin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contec Medical and Guangzhou Shangpin
The main advantage of trading using opposite Contec Medical and Guangzhou Shangpin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contec Medical position performs unexpectedly, Guangzhou Shangpin 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 Guangzhou Shangpin will offset losses from the drop in Guangzhou Shangpin's long position.| Contec Medical vs. Kweichow Moutai Co | Contec Medical vs. Contemporary Amperex Technology | Contec Medical vs. G bits Network Technology | Contec Medical vs. Beijing Roborock Technology |
| Guangzhou Shangpin vs. Industrial and Commercial | Guangzhou Shangpin vs. Agricultural Bank of | Guangzhou Shangpin vs. China Construction Bank | Guangzhou Shangpin vs. Bank of China |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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