Correlation Between Winner Medical and Touchstone International
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By analyzing existing cross correlation between Winner Medical Co and Touchstone International Medical, you can compare the effects of market volatilities on Winner Medical and Touchstone International 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 Touchstone International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Winner Medical and Touchstone International.
Diversification Opportunities for Winner Medical and Touchstone International
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Winner and Touchstone is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Winner Medical Co and Touchstone International Medic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone International 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 Touchstone International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone International has no effect on the direction of Winner Medical i.e., Winner Medical and Touchstone International go up and down completely randomly.
Pair Corralation between Winner Medical and Touchstone International
Assuming the 90 days trading horizon Winner Medical Co is expected to generate 0.95 times more return on investment than Touchstone International. However, Winner Medical Co is 1.06 times less risky than Touchstone International. It trades about 0.27 of its potential returns per unit of risk. Touchstone International Medical is currently generating about 0.04 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 | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Winner Medical Co vs. Touchstone International Medic
Performance |
| Timeline |
| Winner Medical |
| Touchstone International |
Winner Medical and Touchstone International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Winner Medical and Touchstone International
The main advantage of trading using opposite Winner Medical and Touchstone International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Winner Medical position performs unexpectedly, Touchstone International 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 Touchstone International will offset losses from the drop in Touchstone International's long position.| Winner Medical vs. Bank of China | Winner Medical vs. Kweichow Moutai Co | Winner Medical vs. PetroChina Co Ltd | Winner Medical vs. Bank of Communications |
| Touchstone International vs. Bank of China | Touchstone International vs. Kweichow Moutai Co | Touchstone International vs. PetroChina Co Ltd | Touchstone International vs. Bank of Communications |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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