Correlation Between Kunwu Jiuding and Innovative Medical
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By analyzing existing cross correlation between Kunwu Jiuding Investment and Innovative Medical Management, you can compare the effects of market volatilities on Kunwu Jiuding 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 Kunwu Jiuding with a short position of Innovative Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunwu Jiuding and Innovative Medical.
Diversification Opportunities for Kunwu Jiuding and Innovative Medical
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kunwu and Innovative is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Kunwu Jiuding Investment and Innovative Medical Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovative Medical and Kunwu Jiuding 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 Kunwu Jiuding Investment 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 Kunwu Jiuding i.e., Kunwu Jiuding and Innovative Medical go up and down completely randomly.
Pair Corralation between Kunwu Jiuding and Innovative Medical
Assuming the 90 days trading horizon Kunwu Jiuding is expected to generate 1.6 times less return on investment than Innovative Medical. But when comparing it to its historical volatility, Kunwu Jiuding Investment is 1.01 times less risky than Innovative Medical. It trades about 0.02 of its potential returns per unit of risk. Innovative Medical Management is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 739.00 in Innovative Medical Management on August 28, 2024 and sell it today you would earn a total of 99.00 from holding Innovative Medical Management or generate 13.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kunwu Jiuding Investment vs. Innovative Medical Management
Performance |
| Timeline |
| Kunwu Jiuding Investment |
| Innovative Medical |
Kunwu Jiuding and Innovative Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kunwu Jiuding and Innovative Medical
The main advantage of trading using opposite Kunwu Jiuding and Innovative Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunwu Jiuding 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.| Kunwu Jiuding vs. Dongguan Chitwing Technology | Kunwu Jiuding vs. Tianjin Ruixin Technology | Kunwu Jiuding vs. Huitong Construction Group | Kunwu Jiuding vs. Ningbo Construction Co |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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