Correlation Between Double Medical and Great Sun
Specify exactly 2 symbols:
By analyzing existing cross correlation between Double Medical Technology and Great Sun Foods Co, you can compare the effects of market volatilities on Double Medical and Great Sun 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 Great Sun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Double Medical and Great Sun.
Diversification Opportunities for Double Medical and Great Sun
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Double and Great is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Double Medical Technology and Great Sun Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Sun Foods 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 Great Sun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Sun Foods has no effect on the direction of Double Medical i.e., Double Medical and Great Sun go up and down completely randomly.
Pair Corralation between Double Medical and Great Sun
Assuming the 90 days trading horizon Double Medical Technology is expected to under-perform the Great Sun. But the stock apears to be less risky and, when comparing its historical volatility, Double Medical Technology is 2.47 times less risky than Great Sun. The stock trades about -0.16 of its potential returns per unit of risk. The Great Sun Foods Co is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 525.00 in Great Sun Foods Co on September 1, 2024 and sell it today you would lose (28.00) from holding Great Sun Foods Co or give up 5.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Double Medical Technology vs. Great Sun Foods Co
Performance |
| Timeline |
| Double Medical Technology |
| Great Sun Foods |
Double Medical and Great Sun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Double Medical and Great Sun
The main advantage of trading using opposite Double Medical and Great Sun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Double Medical position performs unexpectedly, Great Sun 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 Great Sun will offset losses from the drop in Great Sun's long position.| Double Medical vs. Nanjing Putian Telecommunications | Double Medical vs. Shenzhen Hifuture Electric | Double Medical vs. Tianjin Realty Development | Double Medical vs. Shenyang Huitian Thermal |
| Great Sun vs. Nanjing Putian Telecommunications | Great Sun vs. Shenzhen Hifuture Electric | Great Sun vs. Tianjin Realty Development | Great Sun vs. Shenyang Huitian Thermal |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |