Correlation Between Zhejiang Yongjin and Allmed Medical
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By analyzing existing cross correlation between Zhejiang Yongjin Metal and Allmed Medical Products, you can compare the effects of market volatilities on Zhejiang Yongjin and Allmed Medical 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 Zhejiang Yongjin with a short position of Allmed Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yongjin and Allmed Medical.
Diversification Opportunities for Zhejiang Yongjin and Allmed Medical
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhejiang and Allmed is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yongjin Metal and Allmed Medical Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allmed Medical Products and Zhejiang Yongjin 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 Zhejiang Yongjin Metal are associated (or correlated) with Allmed Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allmed Medical Products has no effect on the direction of Zhejiang Yongjin i.e., Zhejiang Yongjin and Allmed Medical go up and down completely randomly.
Pair Corralation between Zhejiang Yongjin and Allmed Medical
Assuming the 90 days trading horizon Zhejiang Yongjin Metal is expected to generate 1.06 times more return on investment than Allmed Medical. However, Zhejiang Yongjin is 1.06 times more volatile than Allmed Medical Products. It trades about -0.03 of its potential returns per unit of risk. Allmed Medical Products is currently generating about -0.03 per unit of risk. If you would invest 2,888 in Zhejiang Yongjin Metal on September 2, 2024 and sell it today you would lose (969.00) from holding Zhejiang Yongjin Metal or give up 33.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Yongjin Metal vs. Allmed Medical Products
Performance |
| Timeline |
| Zhejiang Yongjin Metal |
| Allmed Medical Products |
Zhejiang Yongjin and Allmed Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Yongjin and Allmed Medical
The main advantage of trading using opposite Zhejiang Yongjin and Allmed Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yongjin position performs unexpectedly, Allmed Medical 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 Allmed Medical will offset losses from the drop in Allmed Medical's long position.| Zhejiang Yongjin vs. Wanhua Chemical Group | Zhejiang Yongjin vs. Baoshan Iron Steel | Zhejiang Yongjin vs. Shandong Gold Mining | Zhejiang Yongjin vs. Rongsheng Petrochemical Co |
| Allmed Medical vs. Shanghai Sanyou Medical | Allmed Medical vs. Ningxia Younglight Chemicals | Allmed Medical vs. Zhejiang Yongjin Metal | Allmed Medical vs. Anhui Transport Consulting |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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