Correlation Between Allgens Medical and Guangdong Shenglu
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By analyzing existing cross correlation between Allgens Medical Technology and Guangdong Shenglu Telecommunication, you can compare the effects of market volatilities on Allgens Medical and Guangdong Shenglu 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 Allgens Medical with a short position of Guangdong Shenglu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allgens Medical and Guangdong Shenglu.
Diversification Opportunities for Allgens Medical and Guangdong Shenglu
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Allgens and Guangdong is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Allgens Medical Technology and Guangdong Shenglu Telecommunic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Shenglu and Allgens 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 Allgens Medical Technology are associated (or correlated) with Guangdong Shenglu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Shenglu has no effect on the direction of Allgens Medical i.e., Allgens Medical and Guangdong Shenglu go up and down completely randomly.
Pair Corralation between Allgens Medical and Guangdong Shenglu
Assuming the 90 days trading horizon Allgens Medical Technology is expected to generate 1.09 times more return on investment than Guangdong Shenglu. However, Allgens Medical is 1.09 times more volatile than Guangdong Shenglu Telecommunication. It trades about -0.09 of its potential returns per unit of risk. Guangdong Shenglu Telecommunication is currently generating about -0.23 per unit of risk. If you would invest 1,891 in Allgens Medical Technology on October 11, 2024 and sell it today you would lose (214.00) from holding Allgens Medical Technology or give up 11.32% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Allgens Medical Technology vs. Guangdong Shenglu Telecommunic
Performance |
Timeline |
Allgens Medical Tech |
Guangdong Shenglu |
Allgens Medical and Guangdong Shenglu Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Allgens Medical and Guangdong Shenglu
The main advantage of trading using opposite Allgens Medical and Guangdong Shenglu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allgens Medical position performs unexpectedly, Guangdong Shenglu 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 Guangdong Shenglu will offset losses from the drop in Guangdong Shenglu's long position.Allgens Medical vs. Shijiazhuang Tonhe Electronics | Allgens Medical vs. CICC Fund Management | Allgens Medical vs. Fuzhou Rockchip Electronics | Allgens Medical vs. Jinlong Machinery Electronic |
Guangdong Shenglu vs. Kweichow Moutai Co | Guangdong Shenglu vs. NAURA Technology Group | Guangdong Shenglu vs. Zhejiang Orient Gene | Guangdong Shenglu vs. APT Medical |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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