Correlation Between APT Medical and Zhongtong Guomai
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By analyzing existing cross correlation between APT Medical and Zhongtong Guomai Communication, you can compare the effects of market volatilities on APT Medical and Zhongtong Guomai 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 Zhongtong Guomai. Check out your portfolio center. Please also check ongoing floating volatility patterns of APT Medical and Zhongtong Guomai.
Diversification Opportunities for APT Medical and Zhongtong Guomai
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between APT and Zhongtong is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding APT Medical and Zhongtong Guomai Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongtong Guomai Com 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 Zhongtong Guomai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongtong Guomai Com has no effect on the direction of APT Medical i.e., APT Medical and Zhongtong Guomai go up and down completely randomly.
Pair Corralation between APT Medical and Zhongtong Guomai
Assuming the 90 days trading horizon APT Medical is expected to generate 5.46 times less return on investment than Zhongtong Guomai. But when comparing it to its historical volatility, APT Medical is 1.26 times less risky than Zhongtong Guomai. It trades about 0.05 of its potential returns per unit of risk. Zhongtong Guomai Communication is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 442.00 in Zhongtong Guomai Communication on September 2, 2024 and sell it today you would earn a total of 679.00 from holding Zhongtong Guomai Communication or generate 153.62% 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. Zhongtong Guomai Communication
Performance |
| Timeline |
| APT Medical |
| Zhongtong Guomai Com |
APT Medical and Zhongtong Guomai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APT Medical and Zhongtong Guomai
The main advantage of trading using opposite APT Medical and Zhongtong Guomai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APT Medical position performs unexpectedly, Zhongtong Guomai 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 Zhongtong Guomai will offset losses from the drop in Zhongtong Guomai'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 |
| Zhongtong Guomai vs. China Petroleum Chemical | Zhongtong Guomai vs. PetroChina Co Ltd | Zhongtong Guomai vs. China State Construction | Zhongtong Guomai 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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