Correlation Between China State and APT Medical
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By analyzing existing cross correlation between China State Construction and APT Medical, you can compare the effects of market volatilities on China State and APT 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 APT Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of China State and APT Medical.
Diversification Opportunities for China State and APT Medical
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and APT is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding China State Construction and APT Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APT Medical 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 APT Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APT Medical has no effect on the direction of China State i.e., China State and APT Medical go up and down completely randomly.
Pair Corralation between China State and APT Medical
Assuming the 90 days trading horizon China State is expected to generate 19.69 times less return on investment than APT Medical. But when comparing it to its historical volatility, China State Construction is 1.86 times less risky than APT Medical. It trades about 0.01 of its potential returns per unit of risk. APT Medical is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 34,436 in APT Medical on September 14, 2024 and sell it today you would earn a total of 2,163 from holding APT Medical or generate 6.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China State Construction vs. APT Medical
Performance |
| Timeline |
| China State Construction |
| APT Medical |
China State and APT Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China State and APT Medical
The main advantage of trading using opposite China State and APT Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China State position performs unexpectedly, APT 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 APT Medical will offset losses from the drop in APT Medical's long position.| China State vs. Ming Yang Smart | China State vs. 159681 | China State vs. 159005 | China State vs. Loctek Ergonomic Technology |
| APT Medical vs. Industrial and Commercial | APT Medical vs. Kweichow Moutai Co | APT Medical vs. Agricultural Bank of | APT Medical vs. China Mobile Limited |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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