Correlation Between Zhende Medical and New China
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhende Medical Co and New China Life, you can compare the effects of market volatilities on Zhende Medical and New China 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 Zhende Medical with a short position of New China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhende Medical and New China.
Diversification Opportunities for Zhende Medical and New China
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhende and New is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Zhende Medical Co and New China Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New China Life and Zhende 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 Zhende Medical Co are associated (or correlated) with New China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New China Life has no effect on the direction of Zhende Medical i.e., Zhende Medical and New China go up and down completely randomly.
Pair Corralation between Zhende Medical and New China
Assuming the 90 days trading horizon Zhende Medical Co is expected to under-perform the New China. But the stock apears to be less risky and, when comparing its historical volatility, Zhende Medical Co is 1.27 times less risky than New China. The stock trades about -0.05 of its potential returns per unit of risk. The New China Life is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 3,117 in New China Life on September 26, 2024 and sell it today you would earn a total of 1,992 from holding New China Life or generate 63.91% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Zhende Medical Co vs. New China Life
Performance |
Timeline |
Zhende Medical |
New China Life |
Zhende Medical and New China Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zhende Medical and New China
The main advantage of trading using opposite Zhende Medical and New China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhende Medical position performs unexpectedly, New China 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 New China will offset losses from the drop in New China's long position.Zhende Medical vs. New China Life | Zhende Medical vs. Ming Yang Smart | Zhende Medical vs. 159681 | Zhende Medical vs. 159005 |
New China vs. Kweichow Moutai Co | New China vs. Shenzhen Mindray Bio Medical | New China vs. Jiangsu Pacific Quartz | New China vs. G bits Network Technology |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Transaction History View history of all your transactions and understand their impact on performance | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |