Correlation Between China Asset and Innovative Medical
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By analyzing existing cross correlation between China Asset Management and Innovative Medical Management, you can compare the effects of market volatilities on China Asset and Innovative 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 China Asset with a short position of Innovative Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Asset and Innovative Medical.
Diversification Opportunities for China Asset and Innovative Medical
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Innovative is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding China Asset Management and Innovative Medical Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovative Medical and China Asset 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 China Asset Management are associated (or correlated) with Innovative Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovative Medical has no effect on the direction of China Asset i.e., China Asset and Innovative Medical go up and down completely randomly.
Pair Corralation between China Asset and Innovative Medical
Assuming the 90 days trading horizon China Asset Management is expected to generate 0.26 times more return on investment than Innovative Medical. However, China Asset Management is 3.8 times less risky than Innovative Medical. It trades about 0.43 of its potential returns per unit of risk. Innovative Medical Management is currently generating about 0.04 per unit of risk. If you would invest 316.00 in China Asset Management on September 28, 2024 and sell it today you would earn a total of 39.00 from holding China Asset Management or generate 12.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Asset Management vs. Innovative Medical Management
Performance |
| Timeline |
| China Asset Management |
| Innovative Medical |
China Asset and Innovative Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Asset and Innovative Medical
The main advantage of trading using opposite China Asset and Innovative Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Asset position performs unexpectedly, Innovative 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 Innovative Medical will offset losses from the drop in Innovative Medical's long position.| China Asset vs. Industrial and Commercial | China Asset vs. Kweichow Moutai Co | China Asset vs. Agricultural Bank of | China Asset vs. China Mobile Limited |
| Innovative Medical vs. BYD Co Ltd | Innovative Medical vs. China Mobile Limited | Innovative Medical vs. Agricultural Bank of | Innovative Medical vs. Industrial and Commercial |
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 Directory module to find actively traded commodities issued by global exchanges.
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