Correlation Between Cowealth Medical and Sunny Loan
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By analyzing existing cross correlation between Cowealth Medical China and Sunny Loan Top, you can compare the effects of market volatilities on Cowealth Medical and Sunny Loan 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 Sunny Loan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cowealth Medical and Sunny Loan.
Diversification Opportunities for Cowealth Medical and Sunny Loan
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cowealth and Sunny is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Cowealth Medical China and Sunny Loan Top in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunny Loan Top 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 Sunny Loan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunny Loan Top has no effect on the direction of Cowealth Medical i.e., Cowealth Medical and Sunny Loan go up and down completely randomly.
Pair Corralation between Cowealth Medical and Sunny Loan
Assuming the 90 days trading horizon Cowealth Medical China is expected to under-perform the Sunny Loan. But the stock apears to be less risky and, when comparing its historical volatility, Cowealth Medical China is 1.1 times less risky than Sunny Loan. The stock trades about -0.02 of its potential returns per unit of risk. The Sunny Loan Top is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,019 in Sunny Loan Top on September 28, 2024 and sell it today you would earn a total of 34.00 from holding Sunny Loan Top or generate 3.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cowealth Medical China vs. Sunny Loan Top
Performance |
| Timeline |
| Cowealth Medical China |
| Sunny Loan Top |
Cowealth Medical and Sunny Loan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cowealth Medical and Sunny Loan
The main advantage of trading using opposite Cowealth Medical and Sunny Loan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cowealth Medical position performs unexpectedly, Sunny Loan 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 Sunny Loan will offset losses from the drop in Sunny Loan's long position.| Cowealth Medical vs. Zhejiang Kingland Pipeline | Cowealth Medical vs. Guangzhou Boji Medical | Cowealth Medical vs. INKON Life Technology | Cowealth Medical vs. Northking Information Technology |
| Sunny Loan vs. Eastroc Beverage Group | Sunny Loan vs. Railway Signal Communication | Sunny Loan vs. Haima Automobile Group | Sunny Loan vs. Eastern 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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