Correlation Between Allmed Medical and Sinofibers Technology
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By analyzing existing cross correlation between Allmed Medical Products and Sinofibers Technology Co, you can compare the effects of market volatilities on Allmed Medical and Sinofibers Technology 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 Allmed Medical with a short position of Sinofibers Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allmed Medical and Sinofibers Technology.
Diversification Opportunities for Allmed Medical and Sinofibers Technology
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Allmed and Sinofibers is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Allmed Medical Products and Sinofibers Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinofibers Technology and Allmed 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 Allmed Medical Products are associated (or correlated) with Sinofibers Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinofibers Technology has no effect on the direction of Allmed Medical i.e., Allmed Medical and Sinofibers Technology go up and down completely randomly.
Pair Corralation between Allmed Medical and Sinofibers Technology
Assuming the 90 days trading horizon Allmed Medical Products is expected to under-perform the Sinofibers Technology. In addition to that, Allmed Medical is 1.0 times more volatile than Sinofibers Technology Co. It trades about -0.19 of its total potential returns per unit of risk. Sinofibers Technology Co is currently generating about 0.24 per unit of volatility. If you would invest 2,727 in Sinofibers Technology Co on September 26, 2024 and sell it today you would earn a total of 288.00 from holding Sinofibers Technology Co or generate 10.56% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Allmed Medical Products vs. Sinofibers Technology Co
Performance |
Timeline |
Allmed Medical Products |
Sinofibers Technology |
Allmed Medical and Sinofibers Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Allmed Medical and Sinofibers Technology
The main advantage of trading using opposite Allmed Medical and Sinofibers Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allmed Medical position performs unexpectedly, Sinofibers Technology 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 Sinofibers Technology will offset losses from the drop in Sinofibers Technology's long position.Allmed Medical vs. New China Life | Allmed Medical vs. Ming Yang Smart | Allmed Medical vs. 159681 | Allmed Medical vs. 159005 |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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