Correlation Between Allgens Medical and Longjian Road
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By analyzing existing cross correlation between Allgens Medical Technology and Longjian Road Bridge, you can compare the effects of market volatilities on Allgens Medical and Longjian Road 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 Longjian Road. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allgens Medical and Longjian Road.
Diversification Opportunities for Allgens Medical and Longjian Road
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Allgens and Longjian is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Allgens Medical Technology and Longjian Road Bridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Longjian Road Bridge 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 Longjian Road. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Longjian Road Bridge has no effect on the direction of Allgens Medical i.e., Allgens Medical and Longjian Road go up and down completely randomly.
Pair Corralation between Allgens Medical and Longjian Road
Assuming the 90 days trading horizon Allgens Medical is expected to generate 4.41 times less return on investment than Longjian Road. But when comparing it to its historical volatility, Allgens Medical Technology is 1.05 times less risky than Longjian Road. It trades about 0.04 of its potential returns per unit of risk. Longjian Road Bridge is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 394.00 in Longjian Road Bridge on September 13, 2024 and sell it today you would earn a total of 40.00 from holding Longjian Road Bridge or generate 10.15% 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. Longjian Road Bridge
Performance |
| Timeline |
| Allgens Medical Tech |
| Longjian Road Bridge |
Allgens Medical and Longjian Road Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allgens Medical and Longjian Road
The main advantage of trading using opposite Allgens Medical and Longjian Road positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allgens Medical position performs unexpectedly, Longjian Road 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 Longjian Road will offset losses from the drop in Longjian Road's long position.| Allgens Medical vs. Longjian Road Bridge | Allgens Medical vs. Chongqing Sulian Plastic | Allgens Medical vs. Everdisplay Optronics Shanghai | Allgens Medical vs. Kangxin New Materials |
| Longjian Road vs. Leyard Optoelectronic | Longjian Road vs. Vontron Technology Co | Longjian Road vs. Sanan Optoelectronics Co | Longjian Road vs. YiDong Electronics Technology |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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