Correlation Between APT Medical and Changchun
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By analyzing existing cross correlation between APT Medical and Changchun UP Optotech, you can compare the effects of market volatilities on APT Medical and Changchun 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 Changchun. Check out your portfolio center. Please also check ongoing floating volatility patterns of APT Medical and Changchun.
Diversification Opportunities for APT Medical and Changchun
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between APT and Changchun is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding APT Medical and Changchun UP Optotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun UP Optotech 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 Changchun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun UP Optotech has no effect on the direction of APT Medical i.e., APT Medical and Changchun go up and down completely randomly.
Pair Corralation between APT Medical and Changchun
Assuming the 90 days trading horizon APT Medical is expected to generate 5.99 times less return on investment than Changchun. But when comparing it to its historical volatility, APT Medical is 1.09 times less risky than Changchun. It trades about 0.04 of its potential returns per unit of risk. Changchun UP Optotech is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 2,486 in Changchun UP Optotech on September 12, 2024 and sell it today you would earn a total of 1,847 from holding Changchun UP Optotech or generate 74.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.28% |
| Values | Daily Returns |
APT Medical vs. Changchun UP Optotech
Performance |
| Timeline |
| APT Medical |
| Changchun UP Optotech |
APT Medical and Changchun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APT Medical and Changchun
The main advantage of trading using opposite APT Medical and Changchun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APT Medical position performs unexpectedly, Changchun 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 Changchun will offset losses from the drop in Changchun's long position.| APT Medical vs. China Petroleum Chemical | APT Medical vs. PetroChina Co Ltd | APT Medical vs. China State Construction | APT Medical vs. China Railway Group |
| Changchun vs. China Life Insurance | Changchun vs. Cinda Securities Co | Changchun vs. Piotech Inc A | Changchun vs. Dongxing Sec 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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