Correlation Between APT Medical and Railway Signal
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By analyzing existing cross correlation between APT Medical and Railway Signal Communication, you can compare the effects of market volatilities on APT Medical and Railway Signal 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 Railway Signal. Check out your portfolio center. Please also check ongoing floating volatility patterns of APT Medical and Railway Signal.
Diversification Opportunities for APT Medical and Railway Signal
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between APT and Railway is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding APT Medical and Railway Signal Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Railway Signal 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 Railway Signal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Railway Signal Commu has no effect on the direction of APT Medical i.e., APT Medical and Railway Signal go up and down completely randomly.
Pair Corralation between APT Medical and Railway Signal
Assuming the 90 days trading horizon APT Medical is expected to generate 1.18 times more return on investment than Railway Signal. However, APT Medical is 1.18 times more volatile than Railway Signal Communication. It trades about 0.06 of its potential returns per unit of risk. Railway Signal Communication is currently generating about 0.04 per unit of risk. If you would invest 19,793 in APT Medical on September 12, 2024 and sell it today you would earn a total of 16,840 from holding APT Medical or generate 85.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
APT Medical vs. Railway Signal Communication
Performance |
| Timeline |
| APT Medical |
| Railway Signal Commu |
APT Medical and Railway Signal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APT Medical and Railway Signal
The main advantage of trading using opposite APT Medical and Railway Signal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APT Medical position performs unexpectedly, Railway Signal 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 Railway Signal will offset losses from the drop in Railway Signal's long position.| APT Medical vs. Cultural Investment Holdings | APT Medical vs. Gome Telecom Equipment | APT Medical vs. Holitech Technology Co | APT Medical vs. Zotye Automobile Co |
| Railway Signal vs. Agricultural Bank of | Railway Signal vs. Industrial and Commercial | Railway Signal vs. Bank of China | Railway Signal vs. PetroChina Co Ltd |
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 Stocks Directory module to find actively traded stocks across global markets.
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