Correlation Between China International and Innovative Medical
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By analyzing existing cross correlation between China International Capital and Innovative Medical Management, you can compare the effects of market volatilities on China International 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 International with a short position of Innovative Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of China International and Innovative Medical.
Diversification Opportunities for China International and Innovative Medical
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Innovative is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding China International Capital 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 International 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 International Capital 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 International i.e., China International and Innovative Medical go up and down completely randomly.
Pair Corralation between China International and Innovative Medical
Assuming the 90 days trading horizon China International is expected to generate 8.64 times less return on investment than Innovative Medical. But when comparing it to its historical volatility, China International Capital is 1.48 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 0.03 of returns per unit of risk over similar time horizon. If you would invest 743.00 in Innovative Medical Management on September 3, 2024 and sell it today you would earn a total of 146.00 from holding Innovative Medical Management or generate 19.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China International Capital vs. Innovative Medical Management
Performance |
| Timeline |
| China International |
| Innovative Medical |
China International and Innovative Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China International and Innovative Medical
The main advantage of trading using opposite China International and Innovative Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China International 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 International vs. Ye Chiu Metal | China International vs. Guangdong Liantai Environmental | China International vs. Anhui Fuhuang Steel | China International vs. Tongxing Environmental Protection |
| Innovative Medical vs. Chengdu Kanghua Biological | Innovative Medical vs. Beijing Wantai Biological | Innovative Medical vs. Suzhou Novoprotein Scientific | Innovative Medical vs. Aluminum Corp of |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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