Correlation Between Industrial and Winner Medical
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By analyzing existing cross correlation between Industrial and Commercial and Winner Medical Co, you can compare the effects of market volatilities on Industrial and Winner 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 Industrial with a short position of Winner Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Winner Medical.
Diversification Opportunities for Industrial and Winner Medical
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Industrial and Winner is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Winner Medical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Winner Medical and Industrial 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 Industrial and Commercial are associated (or correlated) with Winner Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Winner Medical has no effect on the direction of Industrial i.e., Industrial and Winner Medical go up and down completely randomly.
Pair Corralation between Industrial and Winner Medical
Assuming the 90 days trading horizon Industrial and Commercial is expected to under-perform the Winner Medical. But the stock apears to be less risky and, when comparing its historical volatility, Industrial and Commercial is 1.86 times less risky than Winner Medical. The stock trades about -0.14 of its potential returns per unit of risk. The Winner Medical Co is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 4,195 in Winner Medical Co on October 26, 2024 and sell it today you would lose (153.00) from holding Winner Medical Co or give up 3.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Winner Medical Co
Performance |
| Timeline |
| Industrial and Commercial |
| Winner Medical |
Industrial and Winner Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Winner Medical
The main advantage of trading using opposite Industrial and Winner Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, Winner 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 Winner Medical will offset losses from the drop in Winner Medical's long position.| Industrial vs. Sino Platinum Metals Co | Industrial vs. Offshore Oil Engineering | Industrial vs. Heilongjiang Transport Development | Industrial vs. Qingdao Haier Biomedical |
| Winner Medical vs. Agricultural Bank of | Winner Medical vs. Industrial and Commercial | Winner Medical vs. Bank of China | Winner Medical vs. China Construction Bank |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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