Correlation Between Double Medical and Tongling Nonferrous
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By analyzing existing cross correlation between Double Medical Technology and Tongling Nonferrous Metals, you can compare the effects of market volatilities on Double Medical and Tongling Nonferrous 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 Double Medical with a short position of Tongling Nonferrous. Check out your portfolio center. Please also check ongoing floating volatility patterns of Double Medical and Tongling Nonferrous.
Diversification Opportunities for Double Medical and Tongling Nonferrous
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Double and Tongling is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Double Medical Technology and Tongling Nonferrous Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongling Nonferrous and Double 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 Double Medical Technology are associated (or correlated) with Tongling Nonferrous. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tongling Nonferrous has no effect on the direction of Double Medical i.e., Double Medical and Tongling Nonferrous go up and down completely randomly.
Pair Corralation between Double Medical and Tongling Nonferrous
Assuming the 90 days trading horizon Double Medical Technology is expected to under-perform the Tongling Nonferrous. In addition to that, Double Medical is 1.16 times more volatile than Tongling Nonferrous Metals. It trades about -0.01 of its total potential returns per unit of risk. Tongling Nonferrous Metals is currently generating about 0.05 per unit of volatility. If you would invest 284.00 in Tongling Nonferrous Metals on September 14, 2024 and sell it today you would earn a total of 74.00 from holding Tongling Nonferrous Metals or generate 26.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Double Medical Technology vs. Tongling Nonferrous Metals
Performance |
| Timeline |
| Double Medical Technology |
| Tongling Nonferrous |
Double Medical and Tongling Nonferrous Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Double Medical and Tongling Nonferrous
The main advantage of trading using opposite Double Medical and Tongling Nonferrous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Double Medical position performs unexpectedly, Tongling Nonferrous 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 Tongling Nonferrous will offset losses from the drop in Tongling Nonferrous' long position.| Double Medical vs. Industrial and Commercial | Double Medical vs. Kweichow Moutai Co | Double Medical vs. Agricultural Bank of | Double Medical vs. China Mobile Limited |
| Tongling Nonferrous vs. Zijin Mining Group | Tongling Nonferrous vs. Wanhua Chemical Group | Tongling Nonferrous vs. Baoshan Iron Steel | Tongling Nonferrous vs. Shandong Gold Mining |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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