Correlation Between Shenyang Huitian and Double Medical
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By analyzing existing cross correlation between Shenyang Huitian Thermal and Double Medical Technology, you can compare the effects of market volatilities on Shenyang Huitian and Double 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 Shenyang Huitian with a short position of Double Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Huitian and Double Medical.
Diversification Opportunities for Shenyang Huitian and Double Medical
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenyang and Double is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Huitian Thermal and Double Medical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Double Medical Technology and Shenyang Huitian 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 Shenyang Huitian Thermal are associated (or correlated) with Double Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Double Medical Technology has no effect on the direction of Shenyang Huitian i.e., Shenyang Huitian and Double Medical go up and down completely randomly.
Pair Corralation between Shenyang Huitian and Double Medical
Assuming the 90 days trading horizon Shenyang Huitian Thermal is expected to generate 1.05 times more return on investment than Double Medical. However, Shenyang Huitian is 1.05 times more volatile than Double Medical Technology. It trades about 0.01 of its potential returns per unit of risk. Double Medical Technology is currently generating about 0.0 per unit of risk. If you would invest 363.00 in Shenyang Huitian Thermal on September 3, 2024 and sell it today you would earn a total of 7.00 from holding Shenyang Huitian Thermal or generate 1.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Shenyang Huitian Thermal vs. Double Medical Technology
Performance |
| Timeline |
| Shenyang Huitian Thermal |
| Double Medical Technology |
Shenyang Huitian and Double Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Huitian and Double Medical
The main advantage of trading using opposite Shenyang Huitian and Double Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Huitian position performs unexpectedly, Double 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 Double Medical will offset losses from the drop in Double Medical's long position.| Shenyang Huitian vs. Industrial and Commercial | Shenyang Huitian vs. Agricultural Bank of | Shenyang Huitian vs. China Construction Bank | Shenyang Huitian vs. Bank of China |
| Double Medical vs. Chengdu Kanghua Biological | Double Medical vs. Beijing Wantai Biological | Double Medical vs. Suzhou Novoprotein Scientific | Double Medical vs. Aluminum Corp of |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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