Correlation Between Double Medical and East Money
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By analyzing existing cross correlation between Double Medical Technology and East Money Information, you can compare the effects of market volatilities on Double Medical and East Money 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 East Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Double Medical and East Money.
Diversification Opportunities for Double Medical and East Money
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Double and East is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Double Medical Technology and East Money Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on East Money Information 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 East Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of East Money Information has no effect on the direction of Double Medical i.e., Double Medical and East Money go up and down completely randomly.
Pair Corralation between Double Medical and East Money
Assuming the 90 days trading horizon Double Medical is expected to generate 3.89 times less return on investment than East Money. But when comparing it to its historical volatility, Double Medical Technology is 1.24 times less risky than East Money. It trades about 0.01 of its potential returns per unit of risk. East Money Information is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,783 in East Money Information on November 7, 2024 and sell it today you would earn a total of 511.00 from holding East Money Information or generate 28.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Double Medical Technology vs. East Money Information
Performance |
| Timeline |
| Double Medical Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
| East Money Information |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Double Medical and East Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Double Medical and East Money
The main advantage of trading using opposite Double Medical and East Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Double Medical position performs unexpectedly, East Money 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 East Money will offset losses from the drop in East Money's long position.The idea behind Double Medical Technology and East Money Information pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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