Correlation Between Cowealth Medical and Tonghua Grape
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By analyzing existing cross correlation between Cowealth Medical China and Tonghua Grape Wine, you can compare the effects of market volatilities on Cowealth Medical and Tonghua Grape 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 Cowealth Medical with a short position of Tonghua Grape. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cowealth Medical and Tonghua Grape.
Diversification Opportunities for Cowealth Medical and Tonghua Grape
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cowealth and Tonghua is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Cowealth Medical China and Tonghua Grape Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tonghua Grape Wine and Cowealth Medical 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 Cowealth Medical China are associated (or correlated) with Tonghua Grape. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tonghua Grape Wine has no effect on the direction of Cowealth Medical i.e., Cowealth Medical and Tonghua Grape go up and down completely randomly.
Pair Corralation between Cowealth Medical and Tonghua Grape
Assuming the 90 days trading horizon Cowealth Medical China is expected to generate 1.74 times more return on investment than Tonghua Grape. However, Cowealth Medical is 1.74 times more volatile than Tonghua Grape Wine. It trades about 0.07 of its potential returns per unit of risk. Tonghua Grape Wine is currently generating about -0.03 per unit of risk. If you would invest 720.00 in Cowealth Medical China on August 29, 2024 and sell it today you would earn a total of 33.00 from holding Cowealth Medical China or generate 4.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cowealth Medical China vs. Tonghua Grape Wine
Performance |
| Timeline |
| Cowealth Medical China |
| Tonghua Grape Wine |
Cowealth Medical and Tonghua Grape Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cowealth Medical and Tonghua Grape
The main advantage of trading using opposite Cowealth Medical and Tonghua Grape positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cowealth Medical position performs unexpectedly, Tonghua Grape 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 Tonghua Grape will offset losses from the drop in Tonghua Grape's long position.| Cowealth Medical vs. Industrial and Commercial | Cowealth Medical vs. China Construction Bank | Cowealth Medical vs. Agricultural Bank of | Cowealth Medical vs. Bank of China |
| Tonghua Grape vs. BYD Co Ltd | Tonghua Grape vs. China Mobile Limited | Tonghua Grape vs. Agricultural Bank of | Tonghua Grape vs. Industrial and Commercial |
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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