Correlation Between Winner Medical and Allied Machinery
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By analyzing existing cross correlation between Winner Medical Co and Allied Machinery Co, you can compare the effects of market volatilities on Winner Medical and Allied Machinery 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 Allied Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Winner Medical and Allied Machinery.
Diversification Opportunities for Winner Medical and Allied Machinery
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Winner and Allied is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Winner Medical Co and Allied Machinery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allied Machinery 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 Allied Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allied Machinery has no effect on the direction of Winner Medical i.e., Winner Medical and Allied Machinery go up and down completely randomly.
Pair Corralation between Winner Medical and Allied Machinery
Assuming the 90 days trading horizon Winner Medical Co is expected to generate 0.89 times more return on investment than Allied Machinery. However, Winner Medical Co is 1.12 times less risky than Allied Machinery. It trades about -0.01 of its potential returns per unit of risk. Allied Machinery Co is currently generating about -0.02 per unit of risk. If you would invest 4,871 in Winner Medical Co on October 16, 2024 and sell it today you would lose (1,119) from holding Winner Medical Co or give up 22.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Winner Medical Co vs. Allied Machinery Co
Performance |
| Timeline |
| Winner Medical |
| Allied Machinery |
Winner Medical and Allied Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Winner Medical and Allied Machinery
The main advantage of trading using opposite Winner Medical and Allied Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Winner Medical position performs unexpectedly, Allied Machinery 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 Allied Machinery will offset losses from the drop in Allied Machinery's long position.| Winner Medical vs. Jiugui Liquor Co | Winner Medical vs. Guilin Seamild Foods | Winner Medical vs. Fujian Anjoy Foods | Winner Medical vs. Fuda Alloy Materials |
| Allied Machinery vs. Winner Medical Co | Allied Machinery vs. JCHX Mining Management | Allied Machinery vs. Shenyang Blue Silver | Allied Machinery vs. Zhongzhu Medical Holdings |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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