Correlation Between Ningbo MedicalSystem and Allmed Medical
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By analyzing existing cross correlation between Ningbo MedicalSystem Biotechnology and Allmed Medical Products, you can compare the effects of market volatilities on Ningbo MedicalSystem and Allmed 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 Ningbo MedicalSystem with a short position of Allmed Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo MedicalSystem and Allmed Medical.
Diversification Opportunities for Ningbo MedicalSystem and Allmed Medical
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ningbo and Allmed is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo MedicalSystem Biotechno and Allmed Medical Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allmed Medical Products and Ningbo MedicalSystem 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 Ningbo MedicalSystem Biotechnology are associated (or correlated) with Allmed Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allmed Medical Products has no effect on the direction of Ningbo MedicalSystem i.e., Ningbo MedicalSystem and Allmed Medical go up and down completely randomly.
Pair Corralation between Ningbo MedicalSystem and Allmed Medical
Assuming the 90 days trading horizon Ningbo MedicalSystem Biotechnology is expected to generate 0.75 times more return on investment than Allmed Medical. However, Ningbo MedicalSystem Biotechnology is 1.34 times less risky than Allmed Medical. It trades about -0.14 of its potential returns per unit of risk. Allmed Medical Products is currently generating about -0.19 per unit of risk. If you would invest 1,154 in Ningbo MedicalSystem Biotechnology on September 26, 2024 and sell it today you would lose (56.00) from holding Ningbo MedicalSystem Biotechnology or give up 4.85% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Ningbo MedicalSystem Biotechno vs. Allmed Medical Products
Performance |
Timeline |
Ningbo MedicalSystem |
Allmed Medical Products |
Ningbo MedicalSystem and Allmed Medical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ningbo MedicalSystem and Allmed Medical
The main advantage of trading using opposite Ningbo MedicalSystem and Allmed Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo MedicalSystem position performs unexpectedly, Allmed 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 Allmed Medical will offset losses from the drop in Allmed Medical's long position.Ningbo MedicalSystem vs. Industrial and Commercial | Ningbo MedicalSystem vs. Agricultural Bank of | Ningbo MedicalSystem vs. China Construction Bank | Ningbo MedicalSystem vs. Bank of China |
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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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