Correlation Between Zhonghong Pulin and Touchstone International
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By analyzing existing cross correlation between Zhonghong Pulin Medical and Touchstone International Medical, you can compare the effects of market volatilities on Zhonghong Pulin 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 Zhonghong Pulin with a short position of Touchstone International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhonghong Pulin and Touchstone International.
Diversification Opportunities for Zhonghong Pulin and Touchstone International
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhonghong and Touchstone is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Zhonghong Pulin Medical and Touchstone International Medic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone International 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 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 Zhonghong Pulin i.e., Zhonghong Pulin and Touchstone International go up and down completely randomly.
Pair Corralation between Zhonghong Pulin and Touchstone International
Assuming the 90 days trading horizon Zhonghong Pulin Medical is expected to under-perform the Touchstone International. In addition to that, Zhonghong Pulin is 1.05 times more volatile than Touchstone International Medical. It trades about -0.19 of its total potential returns per unit of risk. Touchstone International Medical is currently generating about -0.02 per unit of volatility. If you would invest 1,864 in Touchstone International Medical on October 23, 2024 and sell it today you would lose (17.00) from holding Touchstone International Medical or give up 0.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Zhonghong Pulin Medical vs. Touchstone International Medic
Performance |
| Timeline |
| Zhonghong Pulin Medical |
| Touchstone International |
Zhonghong Pulin and Touchstone International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhonghong Pulin and Touchstone International
The main advantage of trading using opposite Zhonghong Pulin and Touchstone International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhonghong Pulin 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.| Zhonghong Pulin vs. Threes Company Media | Zhonghong Pulin vs. Hainan Airlines Co | Zhonghong Pulin vs. Changjiang Publishing Media | Zhonghong Pulin vs. Beijing Enlight Media |
| Touchstone International vs. Ming Yang Smart | Touchstone International vs. 159681 | Touchstone International vs. 159005 | Touchstone International vs. Loctek Ergonomic Technology |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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