Correlation Between China State and Allmed Medical
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By analyzing existing cross correlation between China State Construction and Allmed Medical Products, you can compare the effects of market volatilities on China State 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 China State with a short position of Allmed Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of China State and Allmed Medical.
Diversification Opportunities for China State and Allmed Medical
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Allmed is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding China State Construction 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 China State 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 China State Construction 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 China State i.e., China State and Allmed Medical go up and down completely randomly.
Pair Corralation between China State and Allmed Medical
Assuming the 90 days trading horizon China State Construction is expected to generate 0.85 times more return on investment than Allmed Medical. However, China State Construction is 1.18 times less risky than Allmed Medical. It trades about 0.02 of its potential returns per unit of risk. Allmed Medical Products is currently generating about -0.02 per unit of risk. If you would invest 530.00 in China State Construction on August 31, 2024 and sell it today you would earn a total of 68.00 from holding China State Construction or generate 12.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.78% |
| Values | Daily Returns |
China State Construction vs. Allmed Medical Products
Performance |
| Timeline |
| China State Construction |
| Allmed Medical Products |
China State and Allmed Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China State and Allmed Medical
The main advantage of trading using opposite China State and Allmed Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China State 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.| China State vs. Guangdong Wens Foodstuff | China State vs. Great Sun Foods Co | China State vs. Tianjin Pengling Rubber | China State vs. Suzhou Xingye Material |
| Allmed Medical vs. PetroChina Co Ltd | Allmed Medical vs. China Mobile Limited | Allmed Medical vs. Ping An Insurance | Allmed Medical vs. China Petroleum Chemical |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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