Correlation Between GKHT Medical and Shenzhen Glory
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By analyzing existing cross correlation between GKHT Medical Technology and Shenzhen Glory Medical, you can compare the effects of market volatilities on GKHT Medical and Shenzhen Glory 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 Shenzhen Glory. Check out your portfolio center. Please also check ongoing floating volatility patterns of GKHT Medical and Shenzhen Glory.
Diversification Opportunities for GKHT Medical and Shenzhen Glory
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between GKHT and Shenzhen is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding GKHT Medical Technology and Shenzhen Glory Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Glory Medical 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 Shenzhen Glory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Glory Medical has no effect on the direction of GKHT Medical i.e., GKHT Medical and Shenzhen Glory go up and down completely randomly.
Pair Corralation between GKHT Medical and Shenzhen Glory
Assuming the 90 days trading horizon GKHT Medical Technology is expected to under-perform the Shenzhen Glory. In addition to that, GKHT Medical is 1.08 times more volatile than Shenzhen Glory Medical. It trades about 0.0 of its total potential returns per unit of risk. Shenzhen Glory Medical is currently generating about 0.11 per unit of volatility. If you would invest 305.00 in Shenzhen Glory Medical on August 25, 2024 and sell it today you would earn a total of 18.00 from holding Shenzhen Glory Medical or generate 5.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
GKHT Medical Technology vs. Shenzhen Glory Medical
Performance |
| Timeline |
| GKHT Medical Technology |
| Shenzhen Glory Medical |
GKHT Medical and Shenzhen Glory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GKHT Medical and Shenzhen Glory
The main advantage of trading using opposite GKHT Medical and Shenzhen Glory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GKHT Medical position performs unexpectedly, Shenzhen Glory 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 Shenzhen Glory will offset losses from the drop in Shenzhen Glory's long position.| GKHT Medical vs. Bank of China | GKHT Medical vs. Kweichow Moutai Co | GKHT Medical vs. PetroChina Co Ltd | GKHT Medical vs. Bank of Communications |
| Shenzhen Glory vs. Lutian Machinery Co | Shenzhen Glory vs. China Longyuan Power | Shenzhen Glory vs. Changshu Tongrun Auto | Shenzhen Glory vs. PetroChina Co Ltd |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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