Correlation Between Shaanxi Broadcast and Allmed Medical
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By analyzing existing cross correlation between Shaanxi Broadcast TV and Allmed Medical Products, you can compare the effects of market volatilities on Shaanxi Broadcast 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 Shaanxi Broadcast with a short position of Allmed Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shaanxi Broadcast and Allmed Medical.
Diversification Opportunities for Shaanxi Broadcast and Allmed Medical
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shaanxi and Allmed is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Shaanxi Broadcast TV 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 Shaanxi Broadcast 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 Shaanxi Broadcast TV 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 Shaanxi Broadcast i.e., Shaanxi Broadcast and Allmed Medical go up and down completely randomly.
Pair Corralation between Shaanxi Broadcast and Allmed Medical
Assuming the 90 days trading horizon Shaanxi Broadcast TV is expected to under-perform the Allmed Medical. But the stock apears to be less risky and, when comparing its historical volatility, Shaanxi Broadcast TV is 1.05 times less risky than Allmed Medical. The stock trades about -0.01 of its potential returns per unit of risk. The Allmed Medical Products is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 873.00 in Allmed Medical Products on November 1, 2024 and sell it today you would earn a total of 84.00 from holding Allmed Medical Products or generate 9.62% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Shaanxi Broadcast TV vs. Allmed Medical Products
Performance |
Timeline |
Shaanxi Broadcast |
Allmed Medical Products |
Shaanxi Broadcast and Allmed Medical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shaanxi Broadcast and Allmed Medical
The main advantage of trading using opposite Shaanxi Broadcast and Allmed Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shaanxi Broadcast 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.Shaanxi Broadcast vs. Sihui Fuji Electronics | Shaanxi Broadcast vs. Weihai Honglin Electronic | Shaanxi Broadcast vs. Montage Technology Co | Shaanxi Broadcast vs. Holitech Technology Co |
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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 Channel module to use Commodity Channel Index to analyze current equity momentum.
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