Correlation Between Winner Medical and Longjian Road
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By analyzing existing cross correlation between Winner Medical Co and Longjian Road Bridge, you can compare the effects of market volatilities on Winner Medical and Longjian Road 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 with a short position of Longjian Road. Check out your portfolio center. Please also check ongoing floating volatility patterns of Winner Medical and Longjian Road.
Diversification Opportunities for Winner Medical and Longjian Road
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Winner and Longjian is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Winner Medical Co and Longjian Road Bridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Longjian Road Bridge and Winner 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 Winner Medical Co are associated (or correlated) with Longjian Road. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Longjian Road Bridge has no effect on the direction of Winner Medical i.e., Winner Medical and Longjian Road go up and down completely randomly.
Pair Corralation between Winner Medical and Longjian Road
Assuming the 90 days trading horizon Winner Medical Co is expected to generate 0.84 times more return on investment than Longjian Road. However, Winner Medical Co is 1.19 times less risky than Longjian Road. It trades about 0.14 of its potential returns per unit of risk. Longjian Road Bridge is currently generating about -0.03 per unit of risk. If you would invest 3,497 in Winner Medical Co on October 30, 2024 and sell it today you would earn a total of 554.00 from holding Winner Medical Co or generate 15.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Winner Medical Co vs. Longjian Road Bridge
Performance |
| Timeline |
| Winner Medical |
| Longjian Road Bridge |
Winner Medical and Longjian Road Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Winner Medical and Longjian Road
The main advantage of trading using opposite Winner Medical and Longjian Road positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Winner Medical position performs unexpectedly, Longjian Road 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 Longjian Road will offset losses from the drop in Longjian Road's long position.| Winner Medical vs. Agricultural Bank of | Winner Medical vs. Industrial and Commercial | Winner Medical vs. Bank of China | Winner Medical vs. China Construction Bank |
| Longjian Road vs. Guosheng Financial Holding | Longjian Road vs. Jiangsu Financial Leasing | Longjian Road vs. Caihong Display Devices | Longjian Road vs. China Greatwall Computer |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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