Correlation Between China Publishing and GKHT Medical
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By analyzing existing cross correlation between China Publishing Media and GKHT Medical Technology, you can compare the effects of market volatilities on China Publishing and GKHT 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 Publishing with a short position of GKHT Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Publishing and GKHT Medical.
Diversification Opportunities for China Publishing and GKHT Medical
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and GKHT is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding China Publishing Media and GKHT Medical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GKHT Medical Technology and China Publishing 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 Publishing Media are associated (or correlated) with GKHT Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GKHT Medical Technology has no effect on the direction of China Publishing i.e., China Publishing and GKHT Medical go up and down completely randomly.
Pair Corralation between China Publishing and GKHT Medical
Assuming the 90 days trading horizon China Publishing Media is expected to generate 2.2 times more return on investment than GKHT Medical. However, China Publishing is 2.2 times more volatile than GKHT Medical Technology. It trades about 0.17 of its potential returns per unit of risk. GKHT Medical Technology is currently generating about -0.09 per unit of risk. If you would invest 735.00 in China Publishing Media on September 13, 2024 and sell it today you would earn a total of 126.00 from holding China Publishing Media or generate 17.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Publishing Media vs. GKHT Medical Technology
Performance |
| Timeline |
| China Publishing Media |
| GKHT Medical Technology |
China Publishing and GKHT Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Publishing and GKHT Medical
The main advantage of trading using opposite China Publishing and GKHT Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Publishing position performs unexpectedly, GKHT 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 GKHT Medical will offset losses from the drop in GKHT Medical's long position.| China Publishing vs. HaiXin Foods Co | China Publishing vs. Jilin Chemical Fibre | China Publishing vs. Xilong Chemical Co | China Publishing vs. Great Sun Foods Co |
| GKHT Medical vs. Industrial and Commercial | GKHT Medical vs. Kweichow Moutai Co | GKHT Medical vs. Agricultural Bank of | GKHT 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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