Correlation Between China Everbright and Innovative Medical
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By analyzing existing cross correlation between China Everbright Bank and Innovative Medical Management, you can compare the effects of market volatilities on China Everbright and Innovative 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 Everbright with a short position of Innovative Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Everbright and Innovative Medical.
Diversification Opportunities for China Everbright and Innovative Medical
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and Innovative is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding China Everbright Bank and Innovative Medical Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovative Medical and China Everbright 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 Everbright Bank are associated (or correlated) with Innovative Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovative Medical has no effect on the direction of China Everbright i.e., China Everbright and Innovative Medical go up and down completely randomly.
Pair Corralation between China Everbright and Innovative Medical
Assuming the 90 days trading horizon China Everbright Bank is expected to generate 0.27 times more return on investment than Innovative Medical. However, China Everbright Bank is 3.68 times less risky than Innovative Medical. It trades about 0.0 of its potential returns per unit of risk. Innovative Medical Management is currently generating about -0.05 per unit of risk. If you would invest 369.00 in China Everbright Bank on October 12, 2024 and sell it today you would lose (1.00) from holding China Everbright Bank or give up 0.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Everbright Bank vs. Innovative Medical Management
Performance |
| Timeline |
| China Everbright Bank |
| Innovative Medical |
China Everbright and Innovative Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Everbright and Innovative Medical
The main advantage of trading using opposite China Everbright and Innovative Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Everbright position performs unexpectedly, Innovative 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 Innovative Medical will offset losses from the drop in Innovative Medical's long position.| China Everbright vs. Penyao Environmental Protection | China Everbright vs. Baoshan Iron Steel | China Everbright vs. Hangzhou Guotai Environmental | China Everbright vs. Porton Fine Chemicals |
| Innovative Medical vs. Guangzhou KingTeller Technology | Innovative Medical vs. Digiwin Software Co | Innovative Medical vs. Sinofibers Technology Co | Innovative Medical vs. Sunwave Communications Co |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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