Correlation Between Contec Medical and Allgens Medical
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By analyzing existing cross correlation between Contec Medical Systems and Allgens Medical Technology, you can compare the effects of market volatilities on Contec Medical and Allgens 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 Contec Medical with a short position of Allgens Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contec Medical and Allgens Medical.
Diversification Opportunities for Contec Medical and Allgens Medical
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Contec and Allgens is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Contec Medical Systems and Allgens Medical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allgens Medical Tech 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 Allgens Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allgens Medical Tech has no effect on the direction of Contec Medical i.e., Contec Medical and Allgens Medical go up and down completely randomly.
Pair Corralation between Contec Medical and Allgens Medical
Assuming the 90 days trading horizon Contec Medical Systems is expected to under-perform the Allgens Medical. But the stock apears to be less risky and, when comparing its historical volatility, Contec Medical Systems is 1.23 times less risky than Allgens Medical. The stock trades about -0.04 of its potential returns per unit of risk. The Allgens Medical Technology is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 2,268 in Allgens Medical Technology on January 23, 2025 and sell it today you would lose (619.00) from holding Allgens Medical Technology or give up 27.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Contec Medical Systems vs. Allgens Medical Technology
Performance |
| Timeline |
| Contec Medical Systems |
| Allgens Medical Tech |
Contec Medical and Allgens Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contec Medical and Allgens Medical
The main advantage of trading using opposite Contec Medical and Allgens Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contec Medical position performs unexpectedly, Allgens 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 Allgens Medical will offset losses from the drop in Allgens Medical's long position.| Contec Medical vs. Agricultural Bank of | Contec Medical vs. Industrial and Commercial | Contec Medical vs. Bank of China | Contec Medical vs. PetroChina Co Ltd |
| Allgens Medical vs. Agricultural Bank of | Allgens Medical vs. Industrial and Commercial | Allgens Medical vs. Bank of China | Allgens Medical vs. PetroChina Co Ltd |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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