Correlation Between Double Medical and Era
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By analyzing existing cross correlation between Double Medical Technology and Era Co, you can compare the effects of market volatilities on Double Medical and Era 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 Era. Check out your portfolio center. Please also check ongoing floating volatility patterns of Double Medical and Era.
Diversification Opportunities for Double Medical and Era
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Double and Era is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Double Medical Technology and Era Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Era Co 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 Era. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Era Co has no effect on the direction of Double Medical i.e., Double Medical and Era go up and down completely randomly.
Pair Corralation between Double Medical and Era
Assuming the 90 days trading horizon Double Medical Technology is expected to under-perform the Era. But the stock apears to be less risky and, when comparing its historical volatility, Double Medical Technology is 1.59 times less risky than Era. The stock trades about -0.16 of its potential returns per unit of risk. The Era Co is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 457.00 in Era Co on September 14, 2024 and sell it today you would earn a total of 67.00 from holding Era Co or generate 14.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Double Medical Technology vs. Era Co
Performance |
| Timeline |
| Double Medical Technology |
| Era Co |
Double Medical and Era Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Double Medical and Era
The main advantage of trading using opposite Double Medical and Era positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Double Medical position performs unexpectedly, Era 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 Era will offset losses from the drop in Era'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 |
| Era vs. Ningbo Ligong Online | Era vs. Haima Automobile Group | Era vs. Zoy Home Furnishing | Era vs. Songz Automobile Air |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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