Correlation Between GKHT Medical and Shanghai Rural
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By analyzing existing cross correlation between GKHT Medical Technology and Shanghai Rural Commercial, you can compare the effects of market volatilities on GKHT Medical and Shanghai Rural 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 Shanghai Rural. Check out your portfolio center. Please also check ongoing floating volatility patterns of GKHT Medical and Shanghai Rural.
Diversification Opportunities for GKHT Medical and Shanghai Rural
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between GKHT and Shanghai is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding GKHT Medical Technology and Shanghai Rural Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Rural Commercial 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 Shanghai Rural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Rural Commercial has no effect on the direction of GKHT Medical i.e., GKHT Medical and Shanghai Rural go up and down completely randomly.
Pair Corralation between GKHT Medical and Shanghai Rural
Assuming the 90 days trading horizon GKHT Medical Technology is expected to under-perform the Shanghai Rural. In addition to that, GKHT Medical is 1.26 times more volatile than Shanghai Rural Commercial. It trades about -0.02 of its total potential returns per unit of risk. Shanghai Rural Commercial is currently generating about 0.12 per unit of volatility. If you would invest 787.00 in Shanghai Rural Commercial on September 14, 2024 and sell it today you would earn a total of 36.00 from holding Shanghai Rural Commercial or generate 4.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
GKHT Medical Technology vs. Shanghai Rural Commercial
Performance |
| Timeline |
| GKHT Medical Technology |
| Shanghai Rural Commercial |
GKHT Medical and Shanghai Rural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GKHT Medical and Shanghai Rural
The main advantage of trading using opposite GKHT Medical and Shanghai Rural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GKHT Medical position performs unexpectedly, Shanghai Rural 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 Shanghai Rural will offset losses from the drop in Shanghai Rural's long position.| GKHT Medical vs. Industrial and Commercial | GKHT Medical vs. Kweichow Moutai Co | GKHT Medical vs. Agricultural Bank of | GKHT Medical vs. China Mobile Limited |
| Shanghai Rural vs. Northking Information Technology | Shanghai Rural vs. Hainan Airlines Co | Shanghai Rural vs. Focus Media Information | Shanghai Rural vs. Yingde Greatchem Chemicals |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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