Correlation Between APT Medical and New China
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By analyzing existing cross correlation between APT Medical and New China Life, you can compare the effects of market volatilities on APT 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 APT Medical with a short position of New China. Check out your portfolio center. Please also check ongoing floating volatility patterns of APT Medical and New China.
Diversification Opportunities for APT Medical and New China
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between APT and New is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding APT Medical 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 APT 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 APT Medical 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 APT Medical i.e., APT Medical and New China go up and down completely randomly.
Pair Corralation between APT Medical and New China
Assuming the 90 days trading horizon APT Medical is expected to generate 67.29 times less return on investment than New China. But when comparing it to its historical volatility, APT Medical is 1.15 times less risky than New China. It trades about 0.0 of its potential returns per unit of risk. New China Life is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 4,577 in New China Life on September 24, 2024 and sell it today you would earn a total of 413.00 from holding New China Life or generate 9.02% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
APT Medical vs. New China Life
Performance |
Timeline |
APT Medical |
New China Life |
APT Medical and New China Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with APT Medical and New China
The main advantage of trading using opposite APT Medical and New China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APT 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.APT Medical vs. New China Life | APT Medical vs. Ming Yang Smart | APT Medical vs. 159681 | APT 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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