Correlation Between Double Medical and Xinxiang Chemical
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By analyzing existing cross correlation between Double Medical Technology and Xinxiang Chemical Fiber, you can compare the effects of market volatilities on Double Medical and Xinxiang Chemical 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 Xinxiang Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Double Medical and Xinxiang Chemical.
Diversification Opportunities for Double Medical and Xinxiang Chemical
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Double and Xinxiang is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Double Medical Technology and Xinxiang Chemical Fiber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinxiang Chemical Fiber 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 Xinxiang Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinxiang Chemical Fiber has no effect on the direction of Double Medical i.e., Double Medical and Xinxiang Chemical go up and down completely randomly.
Pair Corralation between Double Medical and Xinxiang Chemical
Assuming the 90 days trading horizon Double Medical Technology is expected to generate 1.5 times more return on investment than Xinxiang Chemical. However, Double Medical is 1.5 times more volatile than Xinxiang Chemical Fiber. It trades about 0.22 of its potential returns per unit of risk. Xinxiang Chemical Fiber is currently generating about -0.01 per unit of risk. If you would invest 3,103 in Double Medical Technology on October 30, 2024 and sell it today you would earn a total of 409.00 from holding Double Medical Technology or generate 13.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Double Medical Technology vs. Xinxiang Chemical Fiber
Performance |
| Timeline |
| Double Medical Technology |
| Xinxiang Chemical Fiber |
Double Medical and Xinxiang Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Double Medical and Xinxiang Chemical
The main advantage of trading using opposite Double Medical and Xinxiang Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Double Medical position performs unexpectedly, Xinxiang Chemical 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 Xinxiang Chemical will offset losses from the drop in Xinxiang Chemical's long position.| Double Medical vs. Agricultural Bank of | Double Medical vs. Industrial and Commercial | Double Medical vs. Bank of China | Double Medical vs. China Construction Bank |
| Xinxiang Chemical vs. Jinhui Mining Co | Xinxiang Chemical vs. Ningbo Construction Co | Xinxiang Chemical vs. Uroica Mining Safety | Xinxiang Chemical vs. Gifore Agricultural Machinery |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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