Correlation Between China Asset and Allmed Medical
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By analyzing existing cross correlation between China Asset Management and Allmed Medical Products, you can compare the effects of market volatilities on China Asset 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 China Asset with a short position of Allmed Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Asset and Allmed Medical.
Diversification Opportunities for China Asset and Allmed Medical
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between China and Allmed is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding China Asset Management 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 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 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 China Asset i.e., China Asset and Allmed Medical go up and down completely randomly.
Pair Corralation between China Asset and Allmed Medical
Assuming the 90 days trading horizon China Asset is expected to generate 1.29 times less return on investment than Allmed Medical. But when comparing it to its historical volatility, China Asset Management is 2.56 times less risky than Allmed Medical. It trades about 0.2 of its potential returns per unit of risk. Allmed Medical Products is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 869.00 in Allmed Medical Products on September 14, 2024 and sell it today you would earn a total of 55.00 from holding Allmed Medical Products or generate 6.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Asset Management vs. Allmed Medical Products
Performance |
| Timeline |
| China Asset Management |
| Allmed Medical Products |
China Asset and Allmed Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Asset and Allmed Medical
The main advantage of trading using opposite China Asset and Allmed Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Asset 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.| China Asset vs. Kweichow Moutai Co | China Asset vs. Agricultural Bank of | China Asset vs. China Mobile Limited | China Asset vs. China Construction Bank |
| Allmed Medical vs. Industrial and Commercial | Allmed Medical vs. Kweichow Moutai Co | Allmed Medical vs. Agricultural Bank of | Allmed Medical vs. China Mobile Limited |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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