Correlation Between Double Medical and Anhui Transport
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By analyzing existing cross correlation between Double Medical Technology and Anhui Transport Consulting, you can compare the effects of market volatilities on Double Medical and Anhui Transport 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 Anhui Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Double Medical and Anhui Transport.
Diversification Opportunities for Double Medical and Anhui Transport
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Double and Anhui is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Double Medical Technology and Anhui Transport Consulting in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Transport Cons 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 Anhui Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Transport Cons has no effect on the direction of Double Medical i.e., Double Medical and Anhui Transport go up and down completely randomly.
Pair Corralation between Double Medical and Anhui Transport
Assuming the 90 days trading horizon Double Medical Technology is expected to under-perform the Anhui Transport. But the stock apears to be less risky and, when comparing its historical volatility, Double Medical Technology is 1.36 times less risky than Anhui Transport. The stock trades about -0.13 of its potential returns per unit of risk. The Anhui Transport Consulting is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 948.00 in Anhui Transport Consulting on August 28, 2024 and sell it today you would earn a total of 12.00 from holding Anhui Transport Consulting or generate 1.27% 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. Anhui Transport Consulting
Performance |
| Timeline |
| Double Medical Technology |
| Anhui Transport Cons |
Double Medical and Anhui Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Double Medical and Anhui Transport
The main advantage of trading using opposite Double Medical and Anhui Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Double Medical position performs unexpectedly, Anhui Transport 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 Anhui Transport will offset losses from the drop in Anhui Transport's long position.| Double Medical vs. Dazhong Transportation Group | Double Medical vs. Lander Sports Development | Double Medical vs. Kingsignal Technology Co | Double Medical vs. Jiugui Liquor Co |
| Anhui Transport vs. Agricultural Bank of | Anhui Transport vs. Industrial and Commercial | Anhui Transport vs. Bank of China | Anhui Transport vs. China Construction Bank |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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