Correlation Between Zhende Medical and Cultural Investment
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By analyzing existing cross correlation between Zhende Medical Co and Cultural Investment Holdings, you can compare the effects of market volatilities on Zhende Medical and Cultural Investment 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 Cultural Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhende Medical and Cultural Investment.
Diversification Opportunities for Zhende Medical and Cultural Investment
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhende and Cultural is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Zhende Medical Co and Cultural Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cultural Investment 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 Cultural Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cultural Investment has no effect on the direction of Zhende Medical i.e., Zhende Medical and Cultural Investment go up and down completely randomly.
Pair Corralation between Zhende Medical and Cultural Investment
Assuming the 90 days trading horizon Zhende Medical Co is expected to under-perform the Cultural Investment. But the stock apears to be less risky and, when comparing its historical volatility, Zhende Medical Co is 2.03 times less risky than Cultural Investment. The stock trades about -0.05 of its potential returns per unit of risk. The Cultural Investment Holdings is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 227.00 in Cultural Investment Holdings on September 12, 2024 and sell it today you would earn a total of 5.00 from holding Cultural Investment Holdings or generate 2.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhende Medical Co vs. Cultural Investment Holdings
Performance |
| Timeline |
| Zhende Medical |
| Cultural Investment |
Zhende Medical and Cultural Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhende Medical and Cultural Investment
The main advantage of trading using opposite Zhende Medical and Cultural Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhende Medical position performs unexpectedly, Cultural Investment 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 Cultural Investment will offset losses from the drop in Cultural Investment's long position.| Zhende Medical vs. Cultural Investment Holdings | Zhende Medical vs. Gome Telecom Equipment | Zhende Medical vs. Holitech Technology Co | Zhende Medical vs. Zotye Automobile Co |
| Cultural Investment vs. Kweichow Moutai Co | Cultural Investment vs. Shenzhen Mindray Bio Medical | Cultural Investment vs. G bits Network Technology | Cultural Investment vs. Beijing Roborock Technology |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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