Correlation Between Double Medical and Shenzhen Inovance
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By analyzing existing cross correlation between Double Medical Technology and Shenzhen Inovance Tech, you can compare the effects of market volatilities on Double Medical and Shenzhen Inovance 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 Shenzhen Inovance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Double Medical and Shenzhen Inovance.
Diversification Opportunities for Double Medical and Shenzhen Inovance
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Double and Shenzhen is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Double Medical Technology and Shenzhen Inovance Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Inovance Tech 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 Shenzhen Inovance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Inovance Tech has no effect on the direction of Double Medical i.e., Double Medical and Shenzhen Inovance go up and down completely randomly.
Pair Corralation between Double Medical and Shenzhen Inovance
Assuming the 90 days trading horizon Double Medical Technology is expected to under-perform the Shenzhen Inovance. But the stock apears to be less risky and, when comparing its historical volatility, Double Medical Technology is 1.37 times less risky than Shenzhen Inovance. The stock trades about -0.07 of its potential returns per unit of risk. The Shenzhen Inovance Tech is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 5,706 in Shenzhen Inovance Tech on October 15, 2024 and sell it today you would earn a total of 293.00 from holding Shenzhen Inovance Tech or generate 5.13% 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. Shenzhen Inovance Tech
Performance |
| Timeline |
| Double Medical Technology |
| Shenzhen Inovance Tech |
Double Medical and Shenzhen Inovance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Double Medical and Shenzhen Inovance
The main advantage of trading using opposite Double Medical and Shenzhen Inovance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Double Medical position performs unexpectedly, Shenzhen Inovance 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 Shenzhen Inovance will offset losses from the drop in Shenzhen Inovance's long position.| Double Medical vs. Guangzhou Haozhi Industrial | Double Medical vs. Ningbo Fujia Industrial | Double Medical vs. Shenzhen MYS Environmental | Double Medical vs. Zhengzhou Coal Mining |
| Shenzhen Inovance vs. Rising Nonferrous Metals | Shenzhen Inovance vs. Tibet Huayu Mining | Shenzhen Inovance vs. Beijing Jiaman Dress | Shenzhen Inovance vs. Anhui Jinhe Industrial |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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