Correlation Between CHINA TONTINE and Select Medical
Can any of the company-specific risk be diversified away by investing in both CHINA TONTINE and Select Medical at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining CHINA TONTINE and Select Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CHINA TONTINE WINES and Select Medical Holdings, you can compare the effects of market volatilities on CHINA TONTINE and Select Medical 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 CHINA TONTINE with a short position of Select Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHINA TONTINE and Select Medical.
Diversification Opportunities for CHINA TONTINE and Select Medical
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CHINA and Select is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CHINA TONTINE WINES and Select Medical Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Select Medical Holdings and CHINA TONTINE 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 CHINA TONTINE WINES are associated (or correlated) with Select Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Select Medical Holdings has no effect on the direction of CHINA TONTINE i.e., CHINA TONTINE and Select Medical go up and down completely randomly.
Pair Corralation between CHINA TONTINE and Select Medical
If you would invest 1,820 in Select Medical Holdings on October 22, 2024 and sell it today you would earn a total of 30.00 from holding Select Medical Holdings or generate 1.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CHINA TONTINE WINES vs. Select Medical Holdings
Performance |
| Timeline |
| CHINA TONTINE WINES |
| Select Medical Holdings |
CHINA TONTINE and Select Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHINA TONTINE and Select Medical
The main advantage of trading using opposite CHINA TONTINE and Select Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHINA TONTINE position performs unexpectedly, Select Medical 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 Select Medical will offset losses from the drop in Select Medical's long position.| CHINA TONTINE vs. UPDATE SOFTWARE | CHINA TONTINE vs. WisdomTree Investments | CHINA TONTINE vs. Gladstone Investment | CHINA TONTINE vs. ECHO INVESTMENT ZY |
| Select Medical vs. VIVA WINE GROUP | Select Medical vs. CHINA TONTINE WINES | Select Medical vs. Easy Software AG | Select Medical vs. AAC TECHNOLOGHLDGADR |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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