Correlation Between Hengkang Medical and Double Medical
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By analyzing existing cross correlation between Hengkang Medical Group and Double Medical Technology, you can compare the effects of market volatilities on Hengkang Medical 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 Hengkang Medical with a short position of Double Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengkang Medical and Double Medical.
Diversification Opportunities for Hengkang Medical and Double Medical
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hengkang and Double is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Hengkang Medical Group 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 Hengkang 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 Hengkang Medical Group 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 Hengkang Medical i.e., Hengkang Medical and Double Medical go up and down completely randomly.
Pair Corralation between Hengkang Medical and Double Medical
Assuming the 90 days trading horizon Hengkang Medical Group is expected to under-perform the Double Medical. In addition to that, Hengkang Medical is 1.1 times more volatile than Double Medical Technology. It trades about -0.04 of its total potential returns per unit of risk. Double Medical Technology is currently generating about 0.0 per unit of volatility. If you would invest 3,561 in Double Medical Technology on August 24, 2024 and sell it today you would lose (356.00) from holding Double Medical Technology or give up 10.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hengkang Medical Group vs. Double Medical Technology
Performance |
| Timeline |
| Hengkang Medical |
| Double Medical Technology |
Hengkang Medical and Double Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengkang Medical and Double Medical
The main advantage of trading using opposite Hengkang Medical and Double Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengkang Medical 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.| Hengkang Medical vs. China State Construction | Hengkang Medical vs. Poly Real Estate | Hengkang Medical vs. China Vanke Co | Hengkang Medical vs. China Merchants Shekou |
| Double Medical vs. China State Construction | Double Medical vs. Poly Real Estate | Double Medical vs. China Vanke Co | Double Medical vs. China Merchants Shekou |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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