Correlation Between APT Medical and Guangxi Wuzhou
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By analyzing existing cross correlation between APT Medical and Guangxi Wuzhou Communications, you can compare the effects of market volatilities on APT Medical and Guangxi Wuzhou 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 Guangxi Wuzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of APT Medical and Guangxi Wuzhou.
Diversification Opportunities for APT Medical and Guangxi Wuzhou
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between APT and Guangxi is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding APT Medical and Guangxi Wuzhou Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangxi Wuzhou Commu 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 Guangxi Wuzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangxi Wuzhou Commu has no effect on the direction of APT Medical i.e., APT Medical and Guangxi Wuzhou go up and down completely randomly.
Pair Corralation between APT Medical and Guangxi Wuzhou
Assuming the 90 days trading horizon APT Medical is expected to generate 1.11 times more return on investment than Guangxi Wuzhou. However, APT Medical is 1.11 times more volatile than Guangxi Wuzhou Communications. It trades about 0.04 of its potential returns per unit of risk. Guangxi Wuzhou Communications is currently generating about 0.04 per unit of risk. If you would invest 23,653 in APT Medical on October 15, 2024 and sell it today you would earn a total of 10,030 from holding APT Medical or generate 42.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
APT Medical vs. Guangxi Wuzhou Communications
Performance |
| Timeline |
| APT Medical |
| Guangxi Wuzhou Commu |
APT Medical and Guangxi Wuzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APT Medical and Guangxi Wuzhou
The main advantage of trading using opposite APT Medical and Guangxi Wuzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APT Medical position performs unexpectedly, Guangxi Wuzhou 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 Guangxi Wuzhou will offset losses from the drop in Guangxi Wuzhou's long position.| APT Medical vs. Bosera CMSK Industrial | APT Medical vs. Universal Scientific Industrial | APT Medical vs. Rising Nonferrous Metals | APT Medical vs. Xinjiang Baodi Mining |
| Guangxi Wuzhou vs. Anhui Jianghuai Automobile | Guangxi Wuzhou vs. Songz Automobile Air | Guangxi Wuzhou vs. Fiberhome Telecommunication Technologies | Guangxi Wuzhou vs. Huizhou Speed Wireless |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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