Correlation Between Touchstone International and Nanjing Vishee
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By analyzing existing cross correlation between Touchstone International Medical and Nanjing Vishee Medical, you can compare the effects of market volatilities on Touchstone International and Nanjing Vishee 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 Nanjing Vishee. Check out your portfolio center. Please also check ongoing floating volatility patterns of Touchstone International and Nanjing Vishee.
Diversification Opportunities for Touchstone International and Nanjing Vishee
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Touchstone and Nanjing is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Touchstone International Medic and Nanjing Vishee Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing Vishee 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 Nanjing Vishee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing Vishee Medical has no effect on the direction of Touchstone International i.e., Touchstone International and Nanjing Vishee go up and down completely randomly.
Pair Corralation between Touchstone International and Nanjing Vishee
Assuming the 90 days trading horizon Touchstone International Medical is expected to generate 0.79 times more return on investment than Nanjing Vishee. However, Touchstone International Medical is 1.27 times less risky than Nanjing Vishee. It trades about -0.02 of its potential returns per unit of risk. Nanjing Vishee Medical is currently generating about -0.2 per unit of risk. If you would invest 1,864 in Touchstone International Medical on October 23, 2024 and sell it today you would lose (17.00) from holding Touchstone International Medical or give up 0.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Touchstone International Medic vs. Nanjing Vishee Medical
Performance |
| Timeline |
| Touchstone International |
| Nanjing Vishee Medical |
Touchstone International and Nanjing Vishee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Touchstone International and Nanjing Vishee
The main advantage of trading using opposite Touchstone International and Nanjing Vishee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Touchstone International position performs unexpectedly, Nanjing Vishee 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 Nanjing Vishee will offset losses from the drop in Nanjing Vishee's long position.| Touchstone International vs. Ming Yang Smart | Touchstone International vs. 159681 | Touchstone International vs. 159005 | Touchstone International vs. Loctek Ergonomic Technology |
| Nanjing Vishee vs. Ming Yang Smart | Nanjing Vishee vs. 159681 | Nanjing Vishee vs. 159005 | Nanjing Vishee vs. Loctek Ergonomic 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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