Correlation Between Allgens Medical and Dazhong Transportation
Specify exactly 2 symbols:
By analyzing existing cross correlation between Allgens Medical Technology and Dazhong Transportation Group, you can compare the effects of market volatilities on Allgens Medical and Dazhong Transportation 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 Dazhong Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allgens Medical and Dazhong Transportation.
Diversification Opportunities for Allgens Medical and Dazhong Transportation
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Allgens and Dazhong is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Allgens Medical Technology and Dazhong Transportation Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dazhong Transportation 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 Dazhong Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dazhong Transportation has no effect on the direction of Allgens Medical i.e., Allgens Medical and Dazhong Transportation go up and down completely randomly.
Pair Corralation between Allgens Medical and Dazhong Transportation
Assuming the 90 days trading horizon Allgens Medical Technology is expected to under-perform the Dazhong Transportation. But the stock apears to be less risky and, when comparing its historical volatility, Allgens Medical Technology is 1.79 times less risky than Dazhong Transportation. The stock trades about -0.13 of its potential returns per unit of risk. The Dazhong Transportation Group is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 22.00 in Dazhong Transportation Group on November 8, 2024 and sell it today you would earn a total of 1.00 from holding Dazhong Transportation Group or generate 4.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allgens Medical Technology vs. Dazhong Transportation Group
Performance |
| Timeline |
| Allgens Medical Tech |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Dazhong Transportation |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Allgens Medical and Dazhong Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allgens Medical and Dazhong Transportation
The main advantage of trading using opposite Allgens Medical and Dazhong Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allgens Medical position performs unexpectedly, Dazhong Transportation 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 Dazhong Transportation will offset losses from the drop in Dazhong Transportation's long position.The idea behind Allgens Medical Technology and Dazhong Transportation Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |