Correlation Between Allgens Medical and Changjiang Publishing
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By analyzing existing cross correlation between Allgens Medical Technology and Changjiang Publishing Media, you can compare the effects of market volatilities on Allgens Medical and Changjiang Publishing 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 Changjiang Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allgens Medical and Changjiang Publishing.
Diversification Opportunities for Allgens Medical and Changjiang Publishing
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Allgens and Changjiang is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Allgens Medical Technology and Changjiang Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changjiang Publishing 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 Changjiang Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changjiang Publishing has no effect on the direction of Allgens Medical i.e., Allgens Medical and Changjiang Publishing go up and down completely randomly.
Pair Corralation between Allgens Medical and Changjiang Publishing
Assuming the 90 days trading horizon Allgens Medical Technology is expected to under-perform the Changjiang Publishing. But the stock apears to be less risky and, when comparing its historical volatility, Allgens Medical Technology is 1.4 times less risky than Changjiang Publishing. The stock trades about -0.18 of its potential returns per unit of risk. The Changjiang Publishing Media is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 895.00 in Changjiang Publishing Media on October 23, 2024 and sell it today you would lose (29.00) from holding Changjiang Publishing Media or give up 3.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Allgens Medical Technology vs. Changjiang Publishing Media
Performance |
| Timeline |
| Allgens Medical Tech |
| Changjiang Publishing |
Allgens Medical and Changjiang Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allgens Medical and Changjiang Publishing
The main advantage of trading using opposite Allgens Medical and Changjiang Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allgens Medical position performs unexpectedly, Changjiang Publishing 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 Changjiang Publishing will offset losses from the drop in Changjiang Publishing's long position.| Allgens Medical vs. Central Plains Environment | Allgens Medical vs. Shenzhen MYS Environmental | Allgens Medical vs. Shengda Mining Co | Allgens Medical vs. Tibet Huayu Mining |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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