Correlation Between Hefei Metalforming and Kontour Medical
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By analyzing existing cross correlation between Hefei Metalforming Mach and Kontour Medical Technology, you can compare the effects of market volatilities on Hefei Metalforming and Kontour 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 Hefei Metalforming with a short position of Kontour Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hefei Metalforming and Kontour Medical.
Diversification Opportunities for Hefei Metalforming and Kontour Medical
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hefei and Kontour is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Hefei Metalforming Mach and Kontour Medical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kontour Medical Tech and Hefei Metalforming 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 Hefei Metalforming Mach are associated (or correlated) with Kontour Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kontour Medical Tech has no effect on the direction of Hefei Metalforming i.e., Hefei Metalforming and Kontour Medical go up and down completely randomly.
Pair Corralation between Hefei Metalforming and Kontour Medical
Assuming the 90 days trading horizon Hefei Metalforming Mach is expected to generate 1.14 times more return on investment than Kontour Medical. However, Hefei Metalforming is 1.14 times more volatile than Kontour Medical Technology. It trades about 0.02 of its potential returns per unit of risk. Kontour Medical Technology is currently generating about 0.02 per unit of risk. If you would invest 684.00 in Hefei Metalforming Mach on September 26, 2024 and sell it today you would earn a total of 25.00 from holding Hefei Metalforming Mach or generate 3.65% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Hefei Metalforming Mach vs. Kontour Medical Technology
Performance |
Timeline |
Hefei Metalforming Mach |
Kontour Medical Tech |
Hefei Metalforming and Kontour Medical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hefei Metalforming and Kontour Medical
The main advantage of trading using opposite Hefei Metalforming and Kontour Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hefei Metalforming position performs unexpectedly, Kontour 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 Kontour Medical will offset losses from the drop in Kontour Medical's long position.Hefei Metalforming vs. Kontour Medical Technology | Hefei Metalforming vs. Allmed Medical Products | Hefei Metalforming vs. Zhongyin Babi Food | Hefei Metalforming vs. Jafron Biomedical Co |
Kontour Medical vs. New China Life | Kontour Medical vs. Ming Yang Smart | Kontour Medical vs. 159681 | Kontour Medical vs. 159005 |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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