Correlation Between Contec Medical and Nanjing Medlander
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By analyzing existing cross correlation between Contec Medical Systems and Nanjing Medlander Medical, you can compare the effects of market volatilities on Contec Medical and Nanjing Medlander 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 Nanjing Medlander. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contec Medical and Nanjing Medlander.
Diversification Opportunities for Contec Medical and Nanjing Medlander
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Contec and Nanjing is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Contec Medical Systems and Nanjing Medlander Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing Medlander Medical 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 Nanjing Medlander. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing Medlander Medical has no effect on the direction of Contec Medical i.e., Contec Medical and Nanjing Medlander go up and down completely randomly.
Pair Corralation between Contec Medical and Nanjing Medlander
Assuming the 90 days trading horizon Contec Medical Systems is expected to under-perform the Nanjing Medlander. In addition to that, Contec Medical is 1.03 times more volatile than Nanjing Medlander Medical. It trades about -0.12 of its total potential returns per unit of risk. Nanjing Medlander Medical is currently generating about -0.09 per unit of volatility. If you would invest 2,743 in Nanjing Medlander Medical on September 12, 2024 and sell it today you would lose (138.00) from holding Nanjing Medlander Medical or give up 5.03% 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. Nanjing Medlander Medical
Performance |
| Timeline |
| Contec Medical Systems |
| Nanjing Medlander Medical |
Contec Medical and Nanjing Medlander Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contec Medical and Nanjing Medlander
The main advantage of trading using opposite Contec Medical and Nanjing Medlander positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contec Medical position performs unexpectedly, Nanjing Medlander 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 Nanjing Medlander will offset losses from the drop in Nanjing Medlander's long position.| Contec Medical vs. Cultural Investment Holdings | Contec Medical vs. Gome Telecom Equipment | Contec Medical vs. Holitech Technology Co | Contec Medical vs. Zotye Automobile Co |
| Nanjing Medlander vs. Cultural Investment Holdings | Nanjing Medlander vs. Gome Telecom Equipment | Nanjing Medlander vs. Holitech Technology Co | Nanjing Medlander vs. Zotye Automobile Co |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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