Correlation Between Touchstone International and Winner Medical
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By analyzing existing cross correlation between Touchstone International Medical and Winner Medical Co, you can compare the effects of market volatilities on Touchstone International and Winner 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 Touchstone International with a short position of Winner Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Touchstone International and Winner Medical.
Diversification Opportunities for Touchstone International and Winner Medical
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Touchstone and Winner is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Touchstone International Medic and Winner Medical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Winner Medical and Touchstone International 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 Touchstone International Medical are associated (or correlated) with Winner Medical. 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 has no effect on the direction of Touchstone International i.e., Touchstone International and Winner Medical go up and down completely randomly.
Pair Corralation between Touchstone International and Winner Medical
Assuming the 90 days trading horizon Touchstone International is expected to generate 1.38 times less return on investment than Winner Medical. But when comparing it to its historical volatility, Touchstone International Medical is 1.38 times less risky than Winner Medical. It trades about 0.18 of its potential returns per unit of risk. Winner Medical Co is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 2,497 in Winner Medical Co on August 25, 2024 and sell it today you would earn a total of 893.00 from holding Winner Medical Co or generate 35.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Touchstone International Medic vs. Winner Medical Co
Performance |
| Timeline |
| Touchstone International |
| Winner Medical |
Touchstone International and Winner Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Touchstone International and Winner Medical
The main advantage of trading using opposite Touchstone International and Winner Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Touchstone International position performs unexpectedly, Winner 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 Winner Medical will offset losses from the drop in Winner Medical's long position.| Touchstone International vs. Bank of China | Touchstone International vs. Kweichow Moutai Co | Touchstone International vs. PetroChina Co Ltd | Touchstone International vs. Bank of Communications |
| Winner Medical vs. Bank of China | Winner Medical vs. Kweichow Moutai Co | Winner Medical vs. PetroChina Co Ltd | Winner Medical vs. Bank of Communications |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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