Correlation Between Double Medical and GKHT Medical
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By analyzing existing cross correlation between Double Medical Technology and GKHT Medical Technology, you can compare the effects of market volatilities on Double Medical and GKHT Medical 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 GKHT Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Double Medical and GKHT Medical.
Diversification Opportunities for Double Medical and GKHT Medical
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Double and GKHT is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Double Medical Technology and GKHT Medical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GKHT Medical Technology 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 GKHT Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GKHT Medical Technology has no effect on the direction of Double Medical i.e., Double Medical and GKHT Medical go up and down completely randomly.
Pair Corralation between Double Medical and GKHT Medical
Assuming the 90 days trading horizon Double Medical Technology is expected to under-perform the GKHT Medical. But the stock apears to be less risky and, when comparing its historical volatility, Double Medical Technology is 1.79 times less risky than GKHT Medical. The stock trades about -0.13 of its potential returns per unit of risk. The GKHT Medical Technology is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 1,179 in GKHT Medical Technology on August 24, 2024 and sell it today you would lose (36.00) from holding GKHT Medical Technology or give up 3.05% 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. GKHT Medical Technology
Performance |
| Timeline |
| Double Medical Technology |
| GKHT Medical Technology |
Double Medical and GKHT Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Double Medical and GKHT Medical
The main advantage of trading using opposite Double Medical and GKHT Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Double Medical position performs unexpectedly, GKHT Medical 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 GKHT Medical will offset losses from the drop in GKHT Medical's long position.| Double Medical vs. China State Construction | Double Medical vs. Poly Real Estate | Double Medical vs. China Vanke Co | Double Medical vs. China Merchants Shekou |
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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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