Correlation Between APT Medical and Digital China
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By analyzing existing cross correlation between APT Medical and Digital China Information, you can compare the effects of market volatilities on APT Medical and Digital China 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 APT Medical with a short position of Digital China. Check out your portfolio center. Please also check ongoing floating volatility patterns of APT Medical and Digital China.
Diversification Opportunities for APT Medical and Digital China
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between APT and Digital is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding APT Medical and Digital China Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digital China Information and APT 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 APT Medical are associated (or correlated) with Digital China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digital China Information has no effect on the direction of APT Medical i.e., APT Medical and Digital China go up and down completely randomly.
Pair Corralation between APT Medical and Digital China
Assuming the 90 days trading horizon APT Medical is expected to generate 0.95 times more return on investment than Digital China. However, APT Medical is 1.05 times less risky than Digital China. It trades about 0.06 of its potential returns per unit of risk. Digital China Information is currently generating about 0.02 per unit of risk. If you would invest 19,599 in APT Medical on September 2, 2024 and sell it today you would earn a total of 16,663 from holding APT Medical or generate 85.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
APT Medical vs. Digital China Information
Performance |
| Timeline |
| APT Medical |
| Digital China Information |
APT Medical and Digital China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APT Medical and Digital China
The main advantage of trading using opposite APT Medical and Digital China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APT Medical position performs unexpectedly, Digital China 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 Digital China will offset losses from the drop in Digital China's long position.| APT Medical vs. Nanjing Putian Telecommunications | APT Medical vs. Shenzhen Hifuture Electric | APT Medical vs. Tianjin Realty Development | APT Medical vs. Shenyang Huitian Thermal |
| Digital China vs. China Petroleum Chemical | Digital China vs. PetroChina Co Ltd | Digital China vs. China State Construction | Digital China vs. China Railway Group |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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