Correlation Between Double Medical and Yankershop Food
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By analyzing existing cross correlation between Double Medical Technology and Yankershop Food Co, you can compare the effects of market volatilities on Double Medical and Yankershop Food 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 Yankershop Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Double Medical and Yankershop Food.
Diversification Opportunities for Double Medical and Yankershop Food
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Double and Yankershop is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Double Medical Technology and Yankershop Food Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yankershop Food 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 Yankershop Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yankershop Food has no effect on the direction of Double Medical i.e., Double Medical and Yankershop Food go up and down completely randomly.
Pair Corralation between Double Medical and Yankershop Food
Assuming the 90 days trading horizon Double Medical Technology is expected to under-perform the Yankershop Food. But the stock apears to be less risky and, when comparing its historical volatility, Double Medical Technology is 1.41 times less risky than Yankershop Food. The stock trades about -0.16 of its potential returns per unit of risk. The Yankershop Food Co is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 5,008 in Yankershop Food Co on September 1, 2024 and sell it today you would earn a total of 173.00 from holding Yankershop Food Co or generate 3.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Double Medical Technology vs. Yankershop Food Co
Performance |
| Timeline |
| Double Medical Technology |
| Yankershop Food |
Double Medical and Yankershop Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Double Medical and Yankershop Food
The main advantage of trading using opposite Double Medical and Yankershop Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Double Medical position performs unexpectedly, Yankershop Food 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 Yankershop Food will offset losses from the drop in Yankershop Food's long position.| Double Medical vs. Nanjing Putian Telecommunications | Double Medical vs. Shenzhen Hifuture Electric | Double Medical vs. Tianjin Realty Development | Double Medical vs. Shenyang Huitian Thermal |
| Yankershop Food vs. Pengxin International Mining | Yankershop Food vs. Hainan Mining Co | Yankershop Food vs. Ye Chiu Metal | Yankershop Food vs. Shandong Mining 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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