Correlation Between Double Medical and Touchstone International
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By analyzing existing cross correlation between Double Medical Technology and Touchstone International Medical, you can compare the effects of market volatilities on Double Medical and Touchstone International 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 Touchstone International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Double Medical and Touchstone International.
Diversification Opportunities for Double Medical and Touchstone International
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Double and Touchstone is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Double Medical Technology and Touchstone International Medic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone International 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 Touchstone International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone International has no effect on the direction of Double Medical i.e., Double Medical and Touchstone International go up and down completely randomly.
Pair Corralation between Double Medical and Touchstone International
Assuming the 90 days trading horizon Double Medical Technology is expected to under-perform the Touchstone International. But the stock apears to be less risky and, when comparing its historical volatility, Double Medical Technology is 1.2 times less risky than Touchstone International. The stock trades about -0.17 of its potential returns per unit of risk. The Touchstone International Medical is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 2,021 in Touchstone International Medical on September 13, 2024 and sell it today you would lose (8.00) from holding Touchstone International Medical or give up 0.4% 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. Touchstone International Medic
Performance |
| Timeline |
| Double Medical Technology |
| Touchstone International |
Double Medical and Touchstone International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Double Medical and Touchstone International
The main advantage of trading using opposite Double Medical and Touchstone International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Double Medical position performs unexpectedly, Touchstone International 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 Touchstone International will offset losses from the drop in Touchstone International's long position.| Double Medical vs. Industrial and Commercial | Double Medical vs. Kweichow Moutai Co | Double Medical vs. Agricultural Bank of | Double Medical vs. China Mobile Limited |
| Touchstone International vs. Industrial and Commercial | Touchstone International vs. Kweichow Moutai Co | Touchstone International vs. Agricultural Bank of | Touchstone International vs. China Mobile Limited |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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