Correlation Between Sino Medical and Guangdong Qunxing
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By analyzing existing cross correlation between Sino Medical Sciences and Guangdong Qunxing Toys, you can compare the effects of market volatilities on Sino Medical and Guangdong Qunxing 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 Sino Medical with a short position of Guangdong Qunxing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino Medical and Guangdong Qunxing.
Diversification Opportunities for Sino Medical and Guangdong Qunxing
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sino and Guangdong is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Sino Medical Sciences and Guangdong Qunxing Toys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Qunxing Toys and Sino 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 Sino Medical Sciences are associated (or correlated) with Guangdong Qunxing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Qunxing Toys has no effect on the direction of Sino Medical i.e., Sino Medical and Guangdong Qunxing go up and down completely randomly.
Pair Corralation between Sino Medical and Guangdong Qunxing
Assuming the 90 days trading horizon Sino Medical Sciences is expected to generate 1.25 times more return on investment than Guangdong Qunxing. However, Sino Medical is 1.25 times more volatile than Guangdong Qunxing Toys. It trades about 0.04 of its potential returns per unit of risk. Guangdong Qunxing Toys is currently generating about 0.02 per unit of risk. If you would invest 677.00 in Sino Medical Sciences on August 24, 2024 and sell it today you would earn a total of 369.00 from holding Sino Medical Sciences or generate 54.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Sino Medical Sciences vs. Guangdong Qunxing Toys
Performance |
| Timeline |
| Sino Medical Sciences |
| Guangdong Qunxing Toys |
Sino Medical and Guangdong Qunxing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sino Medical and Guangdong Qunxing
The main advantage of trading using opposite Sino Medical and Guangdong Qunxing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino Medical position performs unexpectedly, Guangdong Qunxing 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 Guangdong Qunxing will offset losses from the drop in Guangdong Qunxing's long position.| Sino Medical vs. Changchun Faway Automobile | Sino Medical vs. Chongqing Changan Automobile | Sino Medical vs. Jilin Jlu Communication | Sino Medical vs. Wuhan Yangtze Communication |
| Guangdong Qunxing vs. Kweichow Moutai Co | Guangdong Qunxing vs. Contemporary Amperex Technology | Guangdong Qunxing vs. G bits Network Technology | Guangdong Qunxing 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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