Correlation Between Der International and Chison Medical
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By analyzing existing cross correlation between Der International Home and Chison Medical Technologies, you can compare the effects of market volatilities on Der International and Chison 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 Der International with a short position of Chison Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Der International and Chison Medical.
Diversification Opportunities for Der International and Chison Medical
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Der and Chison is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Der International Home and Chison Medical Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chison Medical Techn and Der International 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 Der International Home are associated (or correlated) with Chison Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chison Medical Techn has no effect on the direction of Der International i.e., Der International and Chison Medical go up and down completely randomly.
Pair Corralation between Der International and Chison Medical
Assuming the 90 days trading horizon Der International Home is expected to generate 1.78 times more return on investment than Chison Medical. However, Der International is 1.78 times more volatile than Chison Medical Technologies. It trades about 0.17 of its potential returns per unit of risk. Chison Medical Technologies is currently generating about 0.06 per unit of risk. If you would invest 490.00 in Der International Home on September 24, 2024 and sell it today you would earn a total of 65.00 from holding Der International Home or generate 13.27% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Der International Home vs. Chison Medical Technologies
Performance |
Timeline |
Der International Home |
Chison Medical Techn |
Der International and Chison Medical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Der International and Chison Medical
The main advantage of trading using opposite Der International and Chison Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Der International position performs unexpectedly, Chison 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 Chison Medical will offset losses from the drop in Chison Medical's long position.Der International vs. Chison Medical Technologies | Der International vs. Hengli Petrochemical Co | Der International vs. Shanghai Sanyou Medical | Der International vs. Eastern Air Logistics |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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