Correlation Between Zhonghong Pulin and Allmed Medical
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By analyzing existing cross correlation between Zhonghong Pulin Medical and Allmed Medical Products, you can compare the effects of market volatilities on Zhonghong Pulin and Allmed 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 Zhonghong Pulin with a short position of Allmed Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhonghong Pulin and Allmed Medical.
Diversification Opportunities for Zhonghong Pulin and Allmed Medical
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhonghong and Allmed is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Zhonghong Pulin Medical and Allmed Medical Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allmed Medical Products and Zhonghong Pulin 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 Zhonghong Pulin Medical are associated (or correlated) with Allmed Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allmed Medical Products has no effect on the direction of Zhonghong Pulin i.e., Zhonghong Pulin and Allmed Medical go up and down completely randomly.
Pair Corralation between Zhonghong Pulin and Allmed Medical
Assuming the 90 days trading horizon Zhonghong Pulin Medical is expected to generate 1.69 times more return on investment than Allmed Medical. However, Zhonghong Pulin is 1.69 times more volatile than Allmed Medical Products. It trades about 0.09 of its potential returns per unit of risk. Allmed Medical Products is currently generating about 0.15 per unit of risk. If you would invest 1,347 in Zhonghong Pulin Medical on August 28, 2024 and sell it today you would earn a total of 107.00 from holding Zhonghong Pulin Medical or generate 7.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhonghong Pulin Medical vs. Allmed Medical Products
Performance |
| Timeline |
| Zhonghong Pulin Medical |
| Allmed Medical Products |
Zhonghong Pulin and Allmed Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhonghong Pulin and Allmed Medical
The main advantage of trading using opposite Zhonghong Pulin and Allmed Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhonghong Pulin position performs unexpectedly, Allmed 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 Allmed Medical will offset losses from the drop in Allmed Medical's long position.| Zhonghong Pulin vs. Lingyuan Iron Steel | Zhonghong Pulin vs. Gansu Jiu Steel | Zhonghong Pulin vs. Yindu Kitchen Equipment | Zhonghong Pulin vs. Dongjiang Environmental Co |
| Allmed Medical vs. Bank of China | Allmed Medical vs. Kweichow Moutai Co | Allmed Medical vs. PetroChina Co Ltd | Allmed Medical 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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