Correlation Between Hengdian Entertainment and Allmed Medical
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By analyzing existing cross correlation between Hengdian Entertainment Co and Allmed Medical Products, you can compare the effects of market volatilities on Hengdian Entertainment 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 Hengdian Entertainment with a short position of Allmed Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengdian Entertainment and Allmed Medical.
Diversification Opportunities for Hengdian Entertainment and Allmed Medical
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hengdian and Allmed is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Hengdian Entertainment Co 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 Hengdian Entertainment 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 Hengdian Entertainment Co 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 Hengdian Entertainment i.e., Hengdian Entertainment and Allmed Medical go up and down completely randomly.
Pair Corralation between Hengdian Entertainment and Allmed Medical
Assuming the 90 days trading horizon Hengdian Entertainment Co is expected to generate 1.25 times more return on investment than Allmed Medical. However, Hengdian Entertainment is 1.25 times more volatile than Allmed Medical Products. It trades about 0.17 of its potential returns per unit of risk. Allmed Medical Products is currently generating about 0.1 per unit of risk. If you would invest 1,432 in Hengdian Entertainment Co on September 14, 2024 and sell it today you would earn a total of 208.00 from holding Hengdian Entertainment Co or generate 14.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hengdian Entertainment Co vs. Allmed Medical Products
Performance |
| Timeline |
| Hengdian Entertainment |
| Allmed Medical Products |
Hengdian Entertainment and Allmed Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengdian Entertainment and Allmed Medical
The main advantage of trading using opposite Hengdian Entertainment and Allmed Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengdian Entertainment 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.| Hengdian Entertainment vs. Industrial and Commercial | Hengdian Entertainment vs. China Construction Bank | Hengdian Entertainment vs. Agricultural Bank of | Hengdian Entertainment vs. Bank of China |
| Allmed Medical vs. Industrial and Commercial | Allmed Medical vs. Kweichow Moutai Co | Allmed Medical vs. Agricultural Bank of | Allmed 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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