Correlation Between APT Medical and Dawning Information
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By analyzing existing cross correlation between APT Medical and Dawning Information Industry, you can compare the effects of market volatilities on APT Medical and Dawning Information 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 Dawning Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of APT Medical and Dawning Information.
Diversification Opportunities for APT Medical and Dawning Information
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between APT and Dawning is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding APT Medical and Dawning Information Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dawning 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 Dawning Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dawning Information has no effect on the direction of APT Medical i.e., APT Medical and Dawning Information go up and down completely randomly.
Pair Corralation between APT Medical and Dawning Information
Assuming the 90 days trading horizon APT Medical is expected to generate 2.3 times less return on investment than Dawning Information. But when comparing it to its historical volatility, APT Medical is 1.44 times less risky than Dawning Information. It trades about 0.05 of its potential returns per unit of risk. Dawning Information Industry is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,499 in Dawning Information Industry on October 25, 2024 and sell it today you would earn a total of 4,053 from holding Dawning Information Industry or generate 162.18% 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. Dawning Information Industry
Performance |
| Timeline |
| APT Medical |
| Dawning Information |
APT Medical and Dawning Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APT Medical and Dawning Information
The main advantage of trading using opposite APT Medical and Dawning Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APT Medical position performs unexpectedly, Dawning Information 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 Dawning Information will offset losses from the drop in Dawning Information's long position.| APT Medical vs. Agricultural Bank of | APT Medical vs. Industrial and Commercial | APT Medical vs. Bank of China | APT Medical vs. China Construction Bank |
| Dawning Information vs. Agricultural Bank of | Dawning Information vs. Industrial and Commercial | Dawning Information vs. Bank of China | Dawning Information vs. China Construction Bank |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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