Correlation Between Zhende Medical and Winner Medical Co
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By analyzing existing cross correlation between Zhende Medical Co and Winner Medical Co, you can compare the effects of market volatilities on Zhende Medical and Winner Medical Co 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 Winner Medical Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhende Medical and Winner Medical Co.
Diversification Opportunities for Zhende Medical and Winner Medical Co
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhende and Winner is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Zhende Medical Co and Winner Medical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Winner Medical Co 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 Winner Medical Co. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Winner Medical Co has no effect on the direction of Zhende Medical i.e., Zhende Medical and Winner Medical Co go up and down completely randomly.
Pair Corralation between Zhende Medical and Winner Medical Co
Assuming the 90 days trading horizon Zhende Medical is expected to generate 10.35 times less return on investment than Winner Medical Co. But when comparing it to its historical volatility, Zhende Medical Co is 1.89 times less risky than Winner Medical Co. It trades about 0.04 of its potential returns per unit of risk. Winner Medical Co is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 3,119 in Winner Medical Co on September 1, 2024 and sell it today you would earn a total of 378.00 from holding Winner Medical Co or generate 12.12% 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. Winner Medical Co
Performance |
| Timeline |
| Zhende Medical |
| Winner Medical Co |
Zhende Medical and Winner Medical Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhende Medical and Winner Medical Co
The main advantage of trading using opposite Zhende Medical and Winner Medical Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhende Medical position performs unexpectedly, Winner Medical Co 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 Winner Medical Co will offset losses from the drop in Winner Medical Co'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 |
| Winner Medical Co vs. Nanjing Putian Telecommunications | Winner Medical Co vs. Shenzhen Hifuture Electric | Winner Medical Co vs. Tianjin Realty Development | Winner Medical Co 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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