Correlation Between APT Medical and Dazhong Transportation
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By analyzing existing cross correlation between APT Medical and Dazhong Transportation Group, you can compare the effects of market volatilities on APT Medical and Dazhong Transportation 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 Dazhong Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of APT Medical and Dazhong Transportation.
Diversification Opportunities for APT Medical and Dazhong Transportation
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between APT and Dazhong is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding APT Medical and Dazhong Transportation Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dazhong Transportation 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 Dazhong Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dazhong Transportation has no effect on the direction of APT Medical i.e., APT Medical and Dazhong Transportation go up and down completely randomly.
Pair Corralation between APT Medical and Dazhong Transportation
Assuming the 90 days trading horizon APT Medical is expected to generate 4.77 times less return on investment than Dazhong Transportation. In addition to that, APT Medical is 1.17 times more volatile than Dazhong Transportation Group. It trades about 0.03 of its total potential returns per unit of risk. Dazhong Transportation Group is currently generating about 0.15 per unit of volatility. If you would invest 20.00 in Dazhong Transportation Group on September 5, 2024 and sell it today you would earn a total of 6.00 from holding Dazhong Transportation Group or generate 30.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
APT Medical vs. Dazhong Transportation Group
Performance |
| Timeline |
| APT Medical |
| Dazhong Transportation |
APT Medical and Dazhong Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APT Medical and Dazhong Transportation
The main advantage of trading using opposite APT Medical and Dazhong Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APT Medical position performs unexpectedly, Dazhong Transportation 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 Dazhong Transportation will offset losses from the drop in Dazhong Transportation's long position.| APT Medical vs. Kweichow Moutai Co | APT Medical vs. Contemporary Amperex Technology | APT Medical vs. G bits Network Technology | APT Medical vs. Beijing Roborock Technology |
| Dazhong Transportation vs. Kweichow Moutai Co | Dazhong Transportation vs. NAURA Technology Group | Dazhong Transportation vs. Zhejiang Orient Gene | Dazhong Transportation vs. APT Medical |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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