Correlation Between Maider Medical and Dongxing Sec
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By analyzing existing cross correlation between Maider Medical Industry and Dongxing Sec Co, you can compare the effects of market volatilities on Maider Medical and Dongxing Sec 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 Maider Medical with a short position of Dongxing Sec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maider Medical and Dongxing Sec.
Diversification Opportunities for Maider Medical and Dongxing Sec
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Maider and Dongxing is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Maider Medical Industry and Dongxing Sec Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongxing Sec and Maider 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 Maider Medical Industry are associated (or correlated) with Dongxing Sec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongxing Sec has no effect on the direction of Maider Medical i.e., Maider Medical and Dongxing Sec go up and down completely randomly.
Pair Corralation between Maider Medical and Dongxing Sec
Assuming the 90 days trading horizon Maider Medical Industry is expected to under-perform the Dongxing Sec. In addition to that, Maider Medical is 1.63 times more volatile than Dongxing Sec Co. It trades about -0.08 of its total potential returns per unit of risk. Dongxing Sec Co is currently generating about 0.06 per unit of volatility. If you would invest 876.00 in Dongxing Sec Co on September 15, 2024 and sell it today you would earn a total of 292.00 from holding Dongxing Sec Co or generate 33.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maider Medical Industry vs. Dongxing Sec Co
Performance |
| Timeline |
| Maider Medical Industry |
| Dongxing Sec |
Maider Medical and Dongxing Sec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maider Medical and Dongxing Sec
The main advantage of trading using opposite Maider Medical and Dongxing Sec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maider Medical position performs unexpectedly, Dongxing Sec 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 Dongxing Sec will offset losses from the drop in Dongxing Sec's long position.| Maider Medical vs. Industrial and Commercial | Maider Medical vs. Kweichow Moutai Co | Maider Medical vs. Agricultural Bank of | Maider Medical vs. China Mobile Limited |
| Dongxing Sec vs. Winner Medical Co | Dongxing Sec vs. Offshore Oil Engineering | Dongxing Sec vs. Maider Medical Industry | Dongxing Sec vs. Xian International Medical |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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