Correlation Between APT Medical and Eastern Communications
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By analyzing existing cross correlation between APT Medical and Eastern Communications Co, you can compare the effects of market volatilities on APT Medical and Eastern Communications 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 Eastern Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of APT Medical and Eastern Communications.
Diversification Opportunities for APT Medical and Eastern Communications
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between APT and Eastern is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding APT Medical and Eastern Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastern Communications 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 Eastern Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastern Communications has no effect on the direction of APT Medical i.e., APT Medical and Eastern Communications go up and down completely randomly.
Pair Corralation between APT Medical and Eastern Communications
Assuming the 90 days trading horizon APT Medical is expected to generate 1.98 times less return on investment than Eastern Communications. In addition to that, APT Medical is 1.15 times more volatile than Eastern Communications Co. It trades about 0.05 of its total potential returns per unit of risk. Eastern Communications Co is currently generating about 0.11 per unit of volatility. If you would invest 31.00 in Eastern Communications Co on September 2, 2024 and sell it today you would earn a total of 12.00 from holding Eastern Communications Co or generate 38.71% 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. Eastern Communications Co
Performance |
| Timeline |
| APT Medical |
| Eastern Communications |
APT Medical and Eastern Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APT Medical and Eastern Communications
The main advantage of trading using opposite APT Medical and Eastern Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APT Medical position performs unexpectedly, Eastern Communications 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 Eastern Communications will offset losses from the drop in Eastern Communications' 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 |
| Eastern Communications vs. Industrial and Commercial | Eastern Communications vs. Kweichow Moutai Co | Eastern Communications vs. Agricultural Bank of | Eastern Communications vs. China Mobile Limited |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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