Correlation Between Nanjing Medlander and Industrial
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By analyzing existing cross correlation between Nanjing Medlander Medical and Industrial and Commercial, you can compare the effects of market volatilities on Nanjing Medlander and Industrial 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 Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Medlander and Industrial.
Diversification Opportunities for Nanjing Medlander and Industrial
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Nanjing and Industrial is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Medlander Medical and Industrial and Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial and Commercial 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 Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial and Commercial has no effect on the direction of Nanjing Medlander i.e., Nanjing Medlander and Industrial go up and down completely randomly.
Pair Corralation between Nanjing Medlander and Industrial
Assuming the 90 days trading horizon Nanjing Medlander Medical is expected to generate 2.04 times more return on investment than Industrial. However, Nanjing Medlander is 2.04 times more volatile than Industrial and Commercial. It trades about 0.05 of its potential returns per unit of risk. Industrial and Commercial is currently generating about 0.08 per unit of risk. If you would invest 2,175 in Nanjing Medlander Medical on August 29, 2024 and sell it today you would earn a total of 345.00 from holding Nanjing Medlander Medical or generate 15.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Medlander Medical vs. Industrial and Commercial
Performance |
| Timeline |
| Nanjing Medlander Medical |
| Industrial and Commercial |
Nanjing Medlander and Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Medlander and Industrial
The main advantage of trading using opposite Nanjing Medlander and Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Medlander position performs unexpectedly, Industrial 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 Industrial will offset losses from the drop in Industrial's long position.| Nanjing Medlander vs. Industrial and Commercial | Nanjing Medlander vs. China Construction Bank | Nanjing Medlander vs. Agricultural Bank of | Nanjing Medlander vs. Bank of China |
| Industrial vs. Sinofibers Technology Co | Industrial vs. Saurer Intelligent Technology | Industrial vs. Sinocelltech Group | Industrial vs. Dhc Software 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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