Correlation Between Sinomach Automobile and Innovative Medical
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By analyzing existing cross correlation between Sinomach Automobile Co and Innovative Medical Management, you can compare the effects of market volatilities on Sinomach Automobile 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 Sinomach Automobile with a short position of Innovative Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach Automobile and Innovative Medical.
Diversification Opportunities for Sinomach Automobile and Innovative Medical
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sinomach and Innovative is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach Automobile Co and Innovative Medical Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovative Medical and Sinomach Automobile 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 Sinomach Automobile Co 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 Sinomach Automobile i.e., Sinomach Automobile and Innovative Medical go up and down completely randomly.
Pair Corralation between Sinomach Automobile and Innovative Medical
Assuming the 90 days trading horizon Sinomach Automobile Co is expected to generate 0.41 times more return on investment than Innovative Medical. However, Sinomach Automobile Co is 2.42 times less risky than Innovative Medical. It trades about 0.01 of its potential returns per unit of risk. Innovative Medical Management is currently generating about -0.06 per unit of risk. If you would invest 685.00 in Sinomach Automobile Co on September 13, 2024 and sell it today you would earn a total of 1.00 from holding Sinomach Automobile Co or generate 0.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinomach Automobile Co vs. Innovative Medical Management
Performance |
| Timeline |
| Sinomach Automobile |
| Innovative Medical |
Sinomach Automobile and Innovative Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach Automobile and Innovative Medical
The main advantage of trading using opposite Sinomach Automobile and Innovative Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach Automobile 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.| Sinomach Automobile vs. Kweichow Moutai Co | Sinomach Automobile vs. Contemporary Amperex Technology | Sinomach Automobile vs. G bits Network Technology | Sinomach Automobile vs. BYD Co Ltd |
| Innovative Medical vs. Nanjing Putian Telecommunications | Innovative Medical vs. Tianjin Realty Development | Innovative Medical vs. Kangyue Technology Co | Innovative Medical vs. Shenzhen Hifuture Electric |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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