Correlation Between GKHT Medical and Guangdong Fenghua
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By analyzing existing cross correlation between GKHT Medical Technology and Guangdong Fenghua Advanced, you can compare the effects of market volatilities on GKHT Medical and Guangdong Fenghua 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 GKHT Medical with a short position of Guangdong Fenghua. Check out your portfolio center. Please also check ongoing floating volatility patterns of GKHT Medical and Guangdong Fenghua.
Diversification Opportunities for GKHT Medical and Guangdong Fenghua
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between GKHT and Guangdong is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding GKHT Medical Technology and Guangdong Fenghua Advanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Fenghua and GKHT 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 GKHT Medical Technology are associated (or correlated) with Guangdong Fenghua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Fenghua has no effect on the direction of GKHT Medical i.e., GKHT Medical and Guangdong Fenghua go up and down completely randomly.
Pair Corralation between GKHT Medical and Guangdong Fenghua
Assuming the 90 days trading horizon GKHT Medical Technology is expected to under-perform the Guangdong Fenghua. In addition to that, GKHT Medical is 1.64 times more volatile than Guangdong Fenghua Advanced. It trades about -0.04 of its total potential returns per unit of risk. Guangdong Fenghua Advanced is currently generating about 0.01 per unit of volatility. If you would invest 1,584 in Guangdong Fenghua Advanced on September 2, 2024 and sell it today you would lose (49.00) from holding Guangdong Fenghua Advanced or give up 3.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 70.71% |
| Values | Daily Returns |
GKHT Medical Technology vs. Guangdong Fenghua Advanced
Performance |
| Timeline |
| GKHT Medical Technology |
| Guangdong Fenghua |
GKHT Medical and Guangdong Fenghua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GKHT Medical and Guangdong Fenghua
The main advantage of trading using opposite GKHT Medical and Guangdong Fenghua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GKHT Medical position performs unexpectedly, Guangdong Fenghua 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 Guangdong Fenghua will offset losses from the drop in Guangdong Fenghua's long position.| GKHT Medical vs. Anhui Huaren Health | GKHT Medical vs. Dhc Software Co | GKHT Medical vs. Linewell Software Co | GKHT Medical vs. Everjoy Health Group |
| Guangdong Fenghua vs. Cofoe Medical Technology | Guangdong Fenghua vs. Xian International Medical | Guangdong Fenghua vs. Jiangxi Naipu Mining | Guangdong Fenghua vs. GKHT Medical Technology |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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