Correlation Between Chison Medical and Ningbo David
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By analyzing existing cross correlation between Chison Medical Technologies and Ningbo David Medical, you can compare the effects of market volatilities on Chison Medical and Ningbo David 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 Chison Medical with a short position of Ningbo David. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chison Medical and Ningbo David.
Diversification Opportunities for Chison Medical and Ningbo David
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chison and Ningbo is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Chison Medical Technologies and Ningbo David Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo David Medical and Chison 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 Chison Medical Technologies are associated (or correlated) with Ningbo David. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo David Medical has no effect on the direction of Chison Medical i.e., Chison Medical and Ningbo David go up and down completely randomly.
Pair Corralation between Chison Medical and Ningbo David
Assuming the 90 days trading horizon Chison Medical is expected to generate 10.79 times less return on investment than Ningbo David. But when comparing it to its historical volatility, Chison Medical Technologies is 1.03 times less risky than Ningbo David. It trades about 0.0 of its potential returns per unit of risk. Ningbo David Medical is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,134 in Ningbo David Medical on September 1, 2024 and sell it today you would earn a total of 128.00 from holding Ningbo David Medical or generate 11.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chison Medical Technologies vs. Ningbo David Medical
Performance |
| Timeline |
| Chison Medical Techn |
| Ningbo David Medical |
Chison Medical and Ningbo David Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chison Medical and Ningbo David
The main advantage of trading using opposite Chison Medical and Ningbo David positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chison Medical position performs unexpectedly, Ningbo David 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 Ningbo David will offset losses from the drop in Ningbo David's long position.| Chison Medical vs. Nanjing Putian Telecommunications | Chison Medical vs. Shenzhen Hifuture Electric | Chison Medical vs. Tianjin Realty Development | Chison Medical vs. Shenyang Huitian Thermal |
| Ningbo David vs. Nanjing Putian Telecommunications | Ningbo David vs. Shenzhen Hifuture Electric | Ningbo David vs. Tianjin Realty Development | Ningbo David vs. Shenyang Huitian Thermal |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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