Correlation Between Double Medical and Sichuan Fulin
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By analyzing existing cross correlation between Double Medical Technology and Sichuan Fulin Transportation, you can compare the effects of market volatilities on Double Medical and Sichuan Fulin 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 Sichuan Fulin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Double Medical and Sichuan Fulin.
Diversification Opportunities for Double Medical and Sichuan Fulin
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Double and Sichuan is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Double Medical Technology and Sichuan Fulin Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Fulin Transp 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 Sichuan Fulin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Fulin Transp has no effect on the direction of Double Medical i.e., Double Medical and Sichuan Fulin go up and down completely randomly.
Pair Corralation between Double Medical and Sichuan Fulin
Assuming the 90 days trading horizon Double Medical is expected to generate 2.82 times less return on investment than Sichuan Fulin. But when comparing it to its historical volatility, Double Medical Technology is 1.04 times less risky than Sichuan Fulin. It trades about 0.01 of its potential returns per unit of risk. Sichuan Fulin Transportation is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 655.00 in Sichuan Fulin Transportation on October 31, 2024 and sell it today you would earn a total of 77.00 from holding Sichuan Fulin Transportation or generate 11.76% 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. Sichuan Fulin Transportation
Performance |
| Timeline |
| Double Medical Technology |
| Sichuan Fulin Transp |
Double Medical and Sichuan Fulin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Double Medical and Sichuan Fulin
The main advantage of trading using opposite Double Medical and Sichuan Fulin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Double Medical position performs unexpectedly, Sichuan Fulin 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 Sichuan Fulin will offset losses from the drop in Sichuan Fulin'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 |
| Sichuan Fulin vs. Hengdian Entertainment Co | Sichuan Fulin vs. Duzhe Publishing Media | Sichuan Fulin vs. Fiberhome Telecommunication Technologies | Sichuan Fulin vs. AUPU Home Style |
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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