Correlation Between Sino Medical and Guangzhou Boji
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By analyzing existing cross correlation between Sino Medical Sciences and Guangzhou Boji Medical, you can compare the effects of market volatilities on Sino Medical and Guangzhou Boji 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 Guangzhou Boji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino Medical and Guangzhou Boji.
Diversification Opportunities for Sino Medical and Guangzhou Boji
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sino and Guangzhou is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Sino Medical Sciences and Guangzhou Boji Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Boji Medical 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 Guangzhou Boji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Boji Medical has no effect on the direction of Sino Medical i.e., Sino Medical and Guangzhou Boji go up and down completely randomly.
Pair Corralation between Sino Medical and Guangzhou Boji
Assuming the 90 days trading horizon Sino Medical Sciences is expected to generate 1.12 times more return on investment than Guangzhou Boji. However, Sino Medical is 1.12 times more volatile than Guangzhou Boji Medical. It trades about 0.02 of its potential returns per unit of risk. Guangzhou Boji Medical is currently generating about -0.12 per unit of risk. If you would invest 976.00 in Sino Medical Sciences on November 1, 2024 and sell it today you would earn a total of 5.00 from holding Sino Medical Sciences or generate 0.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sino Medical Sciences vs. Guangzhou Boji Medical
Performance |
| Timeline |
| Sino Medical Sciences |
| Guangzhou Boji Medical |
Sino Medical and Guangzhou Boji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sino Medical and Guangzhou Boji
The main advantage of trading using opposite Sino Medical and Guangzhou Boji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino Medical position performs unexpectedly, Guangzhou Boji 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 Guangzhou Boji will offset losses from the drop in Guangzhou Boji's long position.| Sino Medical vs. Agricultural Bank of | Sino Medical vs. Industrial and Commercial | Sino Medical vs. Bank of China | Sino Medical vs. China Construction Bank |
| Guangzhou Boji vs. HeBei Jinniu Chemical | Guangzhou Boji vs. Double Medical Technology | Guangzhou Boji vs. Hengli Petrochemical Co | Guangzhou Boji vs. Sino Medical Sciences |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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