Correlation Between APT Medical and Shantui Construction
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By analyzing existing cross correlation between APT Medical and Shantui Construction Machinery, you can compare the effects of market volatilities on APT Medical and Shantui Construction 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 Shantui Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of APT Medical and Shantui Construction.
Diversification Opportunities for APT Medical and Shantui Construction
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between APT and Shantui is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding APT Medical and Shantui Construction Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shantui Construction 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 Shantui Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shantui Construction has no effect on the direction of APT Medical i.e., APT Medical and Shantui Construction go up and down completely randomly.
Pair Corralation between APT Medical and Shantui Construction
Assuming the 90 days trading horizon APT Medical is expected to generate 1.35 times less return on investment than Shantui Construction. But when comparing it to its historical volatility, APT Medical is 1.05 times less risky than Shantui Construction. It trades about 0.06 of its potential returns per unit of risk. Shantui Construction Machinery is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 429.00 in Shantui Construction Machinery on September 3, 2024 and sell it today you would earn a total of 614.00 from holding Shantui Construction Machinery or generate 143.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
APT Medical vs. Shantui Construction Machinery
Performance |
| Timeline |
| APT Medical |
| Shantui Construction |
APT Medical and Shantui Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APT Medical and Shantui Construction
The main advantage of trading using opposite APT Medical and Shantui Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APT Medical position performs unexpectedly, Shantui Construction 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 Shantui Construction will offset losses from the drop in Shantui Construction's long position.| APT Medical vs. Agricultural Bank of | APT Medical vs. Hefei Metalforming Mach | APT Medical vs. Guosheng Financial Holding | APT Medical vs. Zhejiang Yayi Metal |
| Shantui Construction vs. Cultural Investment Holdings | Shantui Construction vs. Gome Telecom Equipment | Shantui Construction vs. Bus Online Co | Shantui Construction vs. Holitech Technology Co |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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