Correlation Between APT Medical and Guotai Epoint
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By analyzing existing cross correlation between APT Medical and Guotai Epoint Software, you can compare the effects of market volatilities on APT Medical and Guotai Epoint 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 Guotai Epoint. Check out your portfolio center. Please also check ongoing floating volatility patterns of APT Medical and Guotai Epoint.
Diversification Opportunities for APT Medical and Guotai Epoint
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between APT and Guotai is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding APT Medical and Guotai Epoint Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guotai Epoint Software 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 Guotai Epoint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guotai Epoint Software has no effect on the direction of APT Medical i.e., APT Medical and Guotai Epoint go up and down completely randomly.
Pair Corralation between APT Medical and Guotai Epoint
Assuming the 90 days trading horizon APT Medical is expected to generate 1.02 times more return on investment than Guotai Epoint. However, APT Medical is 1.02 times more volatile than Guotai Epoint Software. It trades about 0.09 of its potential returns per unit of risk. Guotai Epoint Software is currently generating about -0.19 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 1,342 from holding APT Medical or generate 3.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
APT Medical vs. Guotai Epoint Software
Performance |
| Timeline |
| APT Medical |
| Guotai Epoint Software |
APT Medical and Guotai Epoint Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APT Medical and Guotai Epoint
The main advantage of trading using opposite APT Medical and Guotai Epoint positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APT Medical position performs unexpectedly, Guotai Epoint 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 Guotai Epoint will offset losses from the drop in Guotai Epoint'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 |
| Guotai Epoint vs. Kweichow Moutai Co | Guotai Epoint vs. NAURA Technology Group | Guotai Epoint vs. APT Medical | Guotai Epoint 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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