Correlation Between Double Medical and Shanghai Jinfeng
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By analyzing existing cross correlation between Double Medical Technology and Shanghai Jinfeng Wine, you can compare the effects of market volatilities on Double Medical and Shanghai Jinfeng 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 Shanghai Jinfeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Double Medical and Shanghai Jinfeng.
Diversification Opportunities for Double Medical and Shanghai Jinfeng
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Double and Shanghai is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Double Medical Technology and Shanghai Jinfeng Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Jinfeng Wine 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 Shanghai Jinfeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Jinfeng Wine has no effect on the direction of Double Medical i.e., Double Medical and Shanghai Jinfeng go up and down completely randomly.
Pair Corralation between Double Medical and Shanghai Jinfeng
Assuming the 90 days trading horizon Double Medical Technology is expected to under-perform the Shanghai Jinfeng. But the stock apears to be less risky and, when comparing its historical volatility, Double Medical Technology is 2.0 times less risky than Shanghai Jinfeng. The stock trades about -0.13 of its potential returns per unit of risk. The Shanghai Jinfeng Wine is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 515.00 in Shanghai Jinfeng Wine on August 24, 2024 and sell it today you would earn a total of 66.00 from holding Shanghai Jinfeng Wine or generate 12.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Double Medical Technology vs. Shanghai Jinfeng Wine
Performance |
| Timeline |
| Double Medical Technology |
| Shanghai Jinfeng Wine |
Double Medical and Shanghai Jinfeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Double Medical and Shanghai Jinfeng
The main advantage of trading using opposite Double Medical and Shanghai Jinfeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Double Medical position performs unexpectedly, Shanghai Jinfeng 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 Shanghai Jinfeng will offset losses from the drop in Shanghai Jinfeng'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 |
| Shanghai Jinfeng vs. Aluminum Corp of | Shanghai Jinfeng vs. COL Digital Publishing | Shanghai Jinfeng vs. Shaanxi Meineng Clean | Shanghai Jinfeng vs. Gansu Huangtai Wine marketing |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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