Correlation Between Zhende Medical and Blue Sail
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By analyzing existing cross correlation between Zhende Medical Co and Blue Sail Medical, you can compare the effects of market volatilities on Zhende Medical and Blue Sail 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 Zhende Medical with a short position of Blue Sail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhende Medical and Blue Sail.
Diversification Opportunities for Zhende Medical and Blue Sail
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhende and Blue is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Zhende Medical Co and Blue Sail Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Sail Medical and Zhende 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 Zhende Medical Co are associated (or correlated) with Blue Sail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Sail Medical has no effect on the direction of Zhende Medical i.e., Zhende Medical and Blue Sail go up and down completely randomly.
Pair Corralation between Zhende Medical and Blue Sail
Assuming the 90 days trading horizon Zhende Medical is expected to generate 2.19 times less return on investment than Blue Sail. But when comparing it to its historical volatility, Zhende Medical Co is 1.48 times less risky than Blue Sail. It trades about 0.04 of its potential returns per unit of risk. Blue Sail Medical is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 546.00 in Blue Sail Medical on September 1, 2024 and sell it today you would earn a total of 12.00 from holding Blue Sail Medical or generate 2.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhende Medical Co vs. Blue Sail Medical
Performance |
| Timeline |
| Zhende Medical |
| Blue Sail Medical |
Zhende Medical and Blue Sail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhende Medical and Blue Sail
The main advantage of trading using opposite Zhende Medical and Blue Sail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhende Medical position performs unexpectedly, Blue Sail 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 Blue Sail will offset losses from the drop in Blue Sail's long position.| Zhende Medical vs. Nanjing Putian Telecommunications | Zhende Medical vs. Shenzhen Hifuture Electric | Zhende Medical vs. Tianjin Realty Development | Zhende Medical vs. Shenyang Huitian Thermal |
| Blue Sail vs. Nanjing Putian Telecommunications | Blue Sail vs. Shenzhen Hifuture Electric | Blue Sail vs. Tianjin Realty Development | Blue Sail vs. Shenyang Huitian Thermal |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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