Correlation Between Allgens Medical and Western Metal
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By analyzing existing cross correlation between Allgens Medical Technology and Western Metal Materials, you can compare the effects of market volatilities on Allgens Medical and Western Metal 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 Allgens Medical with a short position of Western Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allgens Medical and Western Metal.
Diversification Opportunities for Allgens Medical and Western Metal
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Allgens and Western is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Allgens Medical Technology and Western Metal Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Metal Materials and Allgens 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 Allgens Medical Technology are associated (or correlated) with Western Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Metal Materials has no effect on the direction of Allgens Medical i.e., Allgens Medical and Western Metal go up and down completely randomly.
Pair Corralation between Allgens Medical and Western Metal
Assuming the 90 days trading horizon Allgens Medical Technology is expected to under-perform the Western Metal. In addition to that, Allgens Medical is 1.15 times more volatile than Western Metal Materials. It trades about -0.01 of its total potential returns per unit of risk. Western Metal Materials is currently generating about 0.02 per unit of volatility. If you would invest 1,484 in Western Metal Materials on September 3, 2024 and sell it today you would earn a total of 134.00 from holding Western Metal Materials or generate 9.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allgens Medical Technology vs. Western Metal Materials
Performance |
| Timeline |
| Allgens Medical Tech |
| Western Metal Materials |
Allgens Medical and Western Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allgens Medical and Western Metal
The main advantage of trading using opposite Allgens Medical and Western Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allgens Medical position performs unexpectedly, Western Metal 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 Western Metal will offset losses from the drop in Western Metal's long position.| Allgens Medical vs. Chengdu Kanghua Biological | Allgens Medical vs. Beijing Wantai Biological | Allgens Medical vs. Suzhou Novoprotein Scientific | Allgens Medical vs. Aluminum Corp of |
| Western Metal vs. Haima Automobile Group | Western Metal vs. FSPG Hi Tech Co | Western Metal vs. Tianjin Hi Tech Development | Western Metal vs. Peoples Insurance of |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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