Correlation Between Winner Medical and China State
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By analyzing existing cross correlation between Winner Medical Co and China State Construction, you can compare the effects of market volatilities on Winner Medical and China State 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 China State. Check out your portfolio center. Please also check ongoing floating volatility patterns of Winner Medical and China State.
Diversification Opportunities for Winner Medical and China State
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Winner and China is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Winner Medical Co and China State Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China State Construction 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 China State. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China State Construction has no effect on the direction of Winner Medical i.e., Winner Medical and China State go up and down completely randomly.
Pair Corralation between Winner Medical and China State
Assuming the 90 days trading horizon Winner Medical Co is expected to generate 1.16 times more return on investment than China State. However, Winner Medical is 1.16 times more volatile than China State Construction. It trades about 0.27 of its potential returns per unit of risk. China State Construction is currently generating about -0.13 per unit of risk. If you would invest 2,956 in Winner Medical Co on August 25, 2024 and sell it today you would earn a total of 434.00 from holding Winner Medical Co or generate 14.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Winner Medical Co vs. China State Construction
Performance |
| Timeline |
| Winner Medical |
| China State Construction |
Winner Medical and China State Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Winner Medical and China State
The main advantage of trading using opposite Winner Medical and China State positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Winner Medical position performs unexpectedly, China State 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 China State will offset losses from the drop in China State's long position.| Winner Medical vs. China State Construction | Winner Medical vs. Poly Real Estate | Winner Medical vs. China Vanke Co | Winner Medical vs. China Merchants Shekou |
| China State vs. Chengdu Kanghua Biological | China State vs. Beijing Wantai Biological | China State vs. Suzhou Novoprotein Scientific | China State vs. Aluminum Corp of |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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