Correlation Between Double Medical and Shanghai Zhangjiang
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By analyzing existing cross correlation between Double Medical Technology and Shanghai Zhangjiang Hi Tech, you can compare the effects of market volatilities on Double Medical and Shanghai Zhangjiang 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 Zhangjiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Double Medical and Shanghai Zhangjiang.
Diversification Opportunities for Double Medical and Shanghai Zhangjiang
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Double and Shanghai is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Double Medical Technology and Shanghai Zhangjiang Hi Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Zhangjiang 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 Zhangjiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Zhangjiang has no effect on the direction of Double Medical i.e., Double Medical and Shanghai Zhangjiang go up and down completely randomly.
Pair Corralation between Double Medical and Shanghai Zhangjiang
Assuming the 90 days trading horizon Double Medical Technology is expected to under-perform the Shanghai Zhangjiang. But the stock apears to be less risky and, when comparing its historical volatility, Double Medical Technology is 2.75 times less risky than Shanghai Zhangjiang. The stock trades about -0.11 of its potential returns per unit of risk. The Shanghai Zhangjiang Hi Tech is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,693 in Shanghai Zhangjiang Hi Tech on August 30, 2024 and sell it today you would earn a total of 148.00 from holding Shanghai Zhangjiang Hi Tech or generate 5.5% 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. Shanghai Zhangjiang Hi Tech
Performance |
| Timeline |
| Double Medical Technology |
| Shanghai Zhangjiang |
Double Medical and Shanghai Zhangjiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Double Medical and Shanghai Zhangjiang
The main advantage of trading using opposite Double Medical and Shanghai Zhangjiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Double Medical position performs unexpectedly, Shanghai Zhangjiang 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 Zhangjiang will offset losses from the drop in Shanghai Zhangjiang's long position.| Double Medical vs. Industrial and Commercial | Double Medical vs. China Construction Bank | Double Medical vs. Bank of China | Double Medical vs. Agricultural Bank of |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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