Correlation Between Nanjing Medlander and Cultural Investment
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By analyzing existing cross correlation between Nanjing Medlander Medical and Cultural Investment Holdings, you can compare the effects of market volatilities on Nanjing Medlander and Cultural Investment 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 Nanjing Medlander with a short position of Cultural Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Medlander and Cultural Investment.
Diversification Opportunities for Nanjing Medlander and Cultural Investment
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nanjing and Cultural is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Medlander Medical and Cultural Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cultural Investment and Nanjing Medlander 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 Nanjing Medlander Medical are associated (or correlated) with Cultural Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cultural Investment has no effect on the direction of Nanjing Medlander i.e., Nanjing Medlander and Cultural Investment go up and down completely randomly.
Pair Corralation between Nanjing Medlander and Cultural Investment
Assuming the 90 days trading horizon Nanjing Medlander Medical is expected to under-perform the Cultural Investment. But the stock apears to be less risky and, when comparing its historical volatility, Nanjing Medlander Medical is 1.3 times less risky than Cultural Investment. The stock trades about 0.0 of its potential returns per unit of risk. The Cultural Investment Holdings is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 244.00 in Cultural Investment Holdings on September 4, 2024 and sell it today you would lose (16.00) from holding Cultural Investment Holdings or give up 6.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Medlander Medical vs. Cultural Investment Holdings
Performance |
| Timeline |
| Nanjing Medlander Medical |
| Cultural Investment |
Nanjing Medlander and Cultural Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Medlander and Cultural Investment
The main advantage of trading using opposite Nanjing Medlander and Cultural Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Medlander position performs unexpectedly, Cultural Investment 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 Cultural Investment will offset losses from the drop in Cultural Investment's long position.The idea behind Nanjing Medlander Medical and Cultural Investment Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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