Correlation Between APT Medical and Hygon Information
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By analyzing existing cross correlation between APT Medical and Hygon Information Technology, you can compare the effects of market volatilities on APT Medical and Hygon 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 Hygon Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of APT Medical and Hygon Information.
Diversification Opportunities for APT Medical and Hygon Information
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between APT and Hygon is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding APT Medical and Hygon Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hygon 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 Hygon Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hygon Information has no effect on the direction of APT Medical i.e., APT Medical and Hygon Information go up and down completely randomly.
Pair Corralation between APT Medical and Hygon Information
Assuming the 90 days trading horizon APT Medical is expected to generate 0.48 times more return on investment than Hygon Information. However, APT Medical is 2.07 times less risky than Hygon Information. It trades about 0.1 of its potential returns per unit of risk. Hygon Information Technology is currently generating about -0.04 per unit of risk. If you would invest 35,762 in APT Medical on October 25, 2024 and sell it today you would earn a total of 1,533 from holding APT Medical or generate 4.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
APT Medical vs. Hygon Information Technology
Performance |
| Timeline |
| APT Medical |
| Hygon Information |
APT Medical and Hygon Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APT Medical and Hygon Information
The main advantage of trading using opposite APT Medical and Hygon Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APT Medical position performs unexpectedly, Hygon 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 Hygon Information will offset losses from the drop in Hygon 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 |
| Hygon Information vs. Kweichow Moutai Co | Hygon Information vs. NAURA Technology Group | Hygon Information vs. APT Medical | Hygon Information vs. BYD 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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