Correlation Between Double Medical and Xizi Clean
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By analyzing existing cross correlation between Double Medical Technology and Xizi Clean Energy, you can compare the effects of market volatilities on Double Medical and Xizi Clean 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 Xizi Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Double Medical and Xizi Clean.
Diversification Opportunities for Double Medical and Xizi Clean
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Double and Xizi is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Double Medical Technology and Xizi Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xizi Clean Energy 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 Xizi Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xizi Clean Energy has no effect on the direction of Double Medical i.e., Double Medical and Xizi Clean go up and down completely randomly.
Pair Corralation between Double Medical and Xizi Clean
Assuming the 90 days trading horizon Double Medical Technology is expected to under-perform the Xizi Clean. But the stock apears to be less risky and, when comparing its historical volatility, Double Medical Technology is 1.04 times less risky than Xizi Clean. The stock trades about -0.17 of its potential returns per unit of risk. The Xizi Clean Energy is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 1,238 in Xizi Clean Energy on September 13, 2024 and sell it today you would lose (46.00) from holding Xizi Clean Energy or give up 3.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Double Medical Technology vs. Xizi Clean Energy
Performance |
| Timeline |
| Double Medical Technology |
| Xizi Clean Energy |
Double Medical and Xizi Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Double Medical and Xizi Clean
The main advantage of trading using opposite Double Medical and Xizi Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Double Medical position performs unexpectedly, Xizi Clean 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 Xizi Clean will offset losses from the drop in Xizi Clean's 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 |
| Xizi Clean vs. Industrial and Commercial | Xizi Clean vs. Kweichow Moutai Co | Xizi Clean vs. Agricultural Bank of | Xizi Clean vs. China Mobile Limited |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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