Correlation Between Fujian Wanchen and Tinavi Medical
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By analyzing existing cross correlation between Fujian Wanchen Biotechnology and Tinavi Medical Technologies, you can compare the effects of market volatilities on Fujian Wanchen and Tinavi Medical 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 Fujian Wanchen with a short position of Tinavi Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Wanchen and Tinavi Medical.
Diversification Opportunities for Fujian Wanchen and Tinavi Medical
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fujian and Tinavi is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Wanchen Biotechnology and Tinavi Medical Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tinavi Medical Techn and Fujian Wanchen 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 Fujian Wanchen Biotechnology are associated (or correlated) with Tinavi Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tinavi Medical Techn has no effect on the direction of Fujian Wanchen i.e., Fujian Wanchen and Tinavi Medical go up and down completely randomly.
Pair Corralation between Fujian Wanchen and Tinavi Medical
Assuming the 90 days trading horizon Fujian Wanchen Biotechnology is expected to generate 1.2 times more return on investment than Tinavi Medical. However, Fujian Wanchen is 1.2 times more volatile than Tinavi Medical Technologies. It trades about 0.22 of its potential returns per unit of risk. Tinavi Medical Technologies is currently generating about -0.05 per unit of risk. If you would invest 7,449 in Fujian Wanchen Biotechnology on October 30, 2024 and sell it today you would earn a total of 2,831 from holding Fujian Wanchen Biotechnology or generate 38.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Wanchen Biotechnology vs. Tinavi Medical Technologies
Performance |
| Timeline |
| Fujian Wanchen Biote |
| Tinavi Medical Techn |
Fujian Wanchen and Tinavi Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Wanchen and Tinavi Medical
The main advantage of trading using opposite Fujian Wanchen and Tinavi Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Wanchen position performs unexpectedly, Tinavi Medical 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 Tinavi Medical will offset losses from the drop in Tinavi Medical's long position.| Fujian Wanchen vs. Ligao Foods CoLtd | Fujian Wanchen vs. Shaanxi Meineng Clean | Fujian Wanchen vs. Sanquan Food Co | Fujian Wanchen vs. Xiwang Foodstuffs Co |
| Tinavi Medical vs. Agricultural Bank of | Tinavi Medical vs. Industrial and Commercial | Tinavi Medical vs. Bank of China | Tinavi Medical vs. China Construction Bank |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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