Correlation Between Double Medical and Suzhou Novoprotein
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By analyzing existing cross correlation between Double Medical Technology and Suzhou Novoprotein Scientific, you can compare the effects of market volatilities on Double Medical and Suzhou Novoprotein 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 Suzhou Novoprotein. Check out your portfolio center. Please also check ongoing floating volatility patterns of Double Medical and Suzhou Novoprotein.
Diversification Opportunities for Double Medical and Suzhou Novoprotein
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Double and Suzhou is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Double Medical Technology and Suzhou Novoprotein Scientific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Novoprotein 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 Suzhou Novoprotein. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Novoprotein has no effect on the direction of Double Medical i.e., Double Medical and Suzhou Novoprotein go up and down completely randomly.
Pair Corralation between Double Medical and Suzhou Novoprotein
Assuming the 90 days trading horizon Double Medical Technology is expected to generate 2.8 times more return on investment than Suzhou Novoprotein. However, Double Medical is 2.8 times more volatile than Suzhou Novoprotein Scientific. It trades about 0.32 of its potential returns per unit of risk. Suzhou Novoprotein Scientific is currently generating about -0.19 per unit of risk. If you would invest 2,970 in Double Medical Technology on November 4, 2024 and sell it today you would earn a total of 542.00 from holding Double Medical Technology or generate 18.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Double Medical Technology vs. Suzhou Novoprotein Scientific
Performance |
| Timeline |
| Double Medical Technology |
| Suzhou Novoprotein |
Double Medical and Suzhou Novoprotein Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Double Medical and Suzhou Novoprotein
The main advantage of trading using opposite Double Medical and Suzhou Novoprotein positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Double Medical position performs unexpectedly, Suzhou Novoprotein 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 Suzhou Novoprotein will offset losses from the drop in Suzhou Novoprotein's long position.| Double Medical vs. Luolai Home Textile | Double Medical vs. Xiamen Insight Investment | Double Medical vs. Xiandai Investment Co | Double Medical vs. Hubei Geoway Investment |
| Suzhou Novoprotein vs. YLZ Information Tech | Suzhou Novoprotein vs. China Sports Industry | Suzhou Novoprotein vs. Shanghai Jinfeng Wine | Suzhou Novoprotein vs. Longmaster Information Tech |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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