Correlation Between Liuzhou Chemical and Allgens Medical
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By analyzing existing cross correlation between Liuzhou Chemical Industry and Allgens Medical Technology, you can compare the effects of market volatilities on Liuzhou Chemical and Allgens 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 Liuzhou Chemical with a short position of Allgens Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liuzhou Chemical and Allgens Medical.
Diversification Opportunities for Liuzhou Chemical and Allgens Medical
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Liuzhou and Allgens is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Liuzhou Chemical Industry and Allgens Medical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allgens Medical Tech and Liuzhou Chemical 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 Liuzhou Chemical Industry are associated (or correlated) with Allgens Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allgens Medical Tech has no effect on the direction of Liuzhou Chemical i.e., Liuzhou Chemical and Allgens Medical go up and down completely randomly.
Pair Corralation between Liuzhou Chemical and Allgens Medical
Assuming the 90 days trading horizon Liuzhou Chemical Industry is expected to generate 1.93 times more return on investment than Allgens Medical. However, Liuzhou Chemical is 1.93 times more volatile than Allgens Medical Technology. It trades about 0.02 of its potential returns per unit of risk. Allgens Medical Technology is currently generating about -0.04 per unit of risk. If you would invest 305.00 in Liuzhou Chemical Industry on October 30, 2024 and sell it today you would lose (3.00) from holding Liuzhou Chemical Industry or give up 0.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Liuzhou Chemical Industry vs. Allgens Medical Technology
Performance |
| Timeline |
| Liuzhou Chemical Industry |
| Allgens Medical Tech |
Liuzhou Chemical and Allgens Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Liuzhou Chemical and Allgens Medical
The main advantage of trading using opposite Liuzhou Chemical and Allgens Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liuzhou Chemical position performs unexpectedly, Allgens 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 Allgens Medical will offset losses from the drop in Allgens Medical's long position.| Liuzhou Chemical vs. Ningbo Construction Co | Liuzhou Chemical vs. China Asset Management | Liuzhou Chemical vs. Hongrun Construction Group | Liuzhou Chemical vs. AVIC Fund Management |
| Allgens Medical vs. Xiangyang Automobile Bearing | Allgens Medical vs. Guangdong Jingyi Metal | Allgens Medical vs. Chengtun Mining Group | Allgens Medical vs. Nanjing Putian Telecommunications |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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