Correlation Between Winner Medical Co and Shenzhen Glory
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By analyzing existing cross correlation between Winner Medical Co and Shenzhen Glory Medical, you can compare the effects of market volatilities on Winner Medical Co and Shenzhen Glory 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 Winner Medical Co with a short position of Shenzhen Glory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Winner Medical Co and Shenzhen Glory.
Diversification Opportunities for Winner Medical Co and Shenzhen Glory
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Winner and Shenzhen is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Winner Medical Co and Shenzhen Glory Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Glory Medical and Winner Medical Co 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 Winner Medical Co are associated (or correlated) with Shenzhen Glory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Glory Medical has no effect on the direction of Winner Medical Co i.e., Winner Medical Co and Shenzhen Glory go up and down completely randomly.
Pair Corralation between Winner Medical Co and Shenzhen Glory
Assuming the 90 days trading horizon Winner Medical Co is expected to generate 1.25 times less return on investment than Shenzhen Glory. In addition to that, Winner Medical Co is 1.14 times more volatile than Shenzhen Glory Medical. It trades about 0.06 of its total potential returns per unit of risk. Shenzhen Glory Medical is currently generating about 0.09 per unit of volatility. If you would invest 258.00 in Shenzhen Glory Medical on September 2, 2024 and sell it today you would earn a total of 80.00 from holding Shenzhen Glory Medical or generate 31.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Winner Medical Co vs. Shenzhen Glory Medical
Performance |
| Timeline |
| Winner Medical Co |
| Shenzhen Glory Medical |
Winner Medical Co and Shenzhen Glory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Winner Medical Co and Shenzhen Glory
The main advantage of trading using opposite Winner Medical Co and Shenzhen Glory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Winner Medical Co position performs unexpectedly, Shenzhen Glory 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 Shenzhen Glory will offset losses from the drop in Shenzhen Glory's long position.| Winner Medical Co vs. Nanjing Putian Telecommunications | Winner Medical Co vs. Shenzhen Hifuture Electric | Winner Medical Co vs. Tianjin Realty Development | Winner Medical Co vs. Shenyang Huitian Thermal |
| Shenzhen Glory vs. Industrial and Commercial | Shenzhen Glory vs. Agricultural Bank of | Shenzhen Glory vs. China Construction Bank | Shenzhen Glory 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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