Correlation Between Touchstone International and Zhonghong Pulin
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By analyzing existing cross correlation between Touchstone International Medical and Zhonghong Pulin Medical, you can compare the effects of market volatilities on Touchstone International and Zhonghong Pulin 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 Zhonghong Pulin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Touchstone International and Zhonghong Pulin.
Diversification Opportunities for Touchstone International and Zhonghong Pulin
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Touchstone and Zhonghong is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Touchstone International Medic and Zhonghong Pulin Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhonghong Pulin 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 Zhonghong Pulin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhonghong Pulin Medical has no effect on the direction of Touchstone International i.e., Touchstone International and Zhonghong Pulin go up and down completely randomly.
Pair Corralation between Touchstone International and Zhonghong Pulin
Assuming the 90 days trading horizon Touchstone International Medical is expected to under-perform the Zhonghong Pulin. But the stock apears to be less risky and, when comparing its historical volatility, Touchstone International Medical is 2.14 times less risky than Zhonghong Pulin. The stock trades about 0.0 of its potential returns per unit of risk. The Zhonghong Pulin Medical is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,347 in Zhonghong Pulin Medical on August 28, 2024 and sell it today you would earn a total of 107.00 from holding Zhonghong Pulin Medical or generate 7.94% 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. Zhonghong Pulin Medical
Performance |
| Timeline |
| Touchstone International |
| Zhonghong Pulin Medical |
Touchstone International and Zhonghong Pulin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Touchstone International and Zhonghong Pulin
The main advantage of trading using opposite Touchstone International and Zhonghong Pulin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Touchstone International position performs unexpectedly, Zhonghong Pulin 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 Zhonghong Pulin will offset losses from the drop in Zhonghong Pulin'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 |
| Zhonghong Pulin vs. Lingyuan Iron Steel | Zhonghong Pulin vs. Gansu Jiu Steel | Zhonghong Pulin vs. Yindu Kitchen Equipment | Zhonghong Pulin vs. Dongjiang Environmental Co |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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