Correlation Between Beijing Wandong and InspireMD
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By analyzing existing cross correlation between Beijing Wandong Medical and InspireMD, you can compare the effects of market volatilities on Beijing Wandong and InspireMD 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 Beijing Wandong with a short position of InspireMD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Wandong and InspireMD.
Diversification Opportunities for Beijing Wandong and InspireMD
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and InspireMD is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Wandong Medical and InspireMD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InspireMD and Beijing Wandong 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 Beijing Wandong Medical are associated (or correlated) with InspireMD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InspireMD has no effect on the direction of Beijing Wandong i.e., Beijing Wandong and InspireMD go up and down completely randomly.
Pair Corralation between Beijing Wandong and InspireMD
Assuming the 90 days trading horizon Beijing Wandong Medical is expected to under-perform the InspireMD. But the stock apears to be less risky and, when comparing its historical volatility, Beijing Wandong Medical is 3.52 times less risky than InspireMD. The stock trades about -0.18 of its potential returns per unit of risk. The InspireMD is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 242.00 in InspireMD on August 28, 2025 and sell it today you would lose (33.00) from holding InspireMD or give up 13.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 86.05% |
| Values | Daily Returns |
Beijing Wandong Medical vs. InspireMD
Performance |
| Timeline |
| Beijing Wandong Medical |
| InspireMD |
Beijing Wandong and InspireMD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Wandong and InspireMD
The main advantage of trading using opposite Beijing Wandong and InspireMD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Wandong position performs unexpectedly, InspireMD 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 InspireMD will offset losses from the drop in InspireMD's long position.| Beijing Wandong vs. Western Superconducting Tech | Beijing Wandong vs. Tianshui Huatian Technology | Beijing Wandong vs. Montage Technology Co | Beijing Wandong vs. Datang Telecom Technology |
| InspireMD vs. Comtech Telecommunications Corp | InspireMD vs. Oasis Hotel Resort | InspireMD vs. Chatham Lodging Trust | InspireMD vs. Storage Computer |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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