Correlation Between GKHT Medical and Xiamen Goldenhome
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By analyzing existing cross correlation between GKHT Medical Technology and Xiamen Goldenhome Co, you can compare the effects of market volatilities on GKHT Medical and Xiamen Goldenhome 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 Xiamen Goldenhome. Check out your portfolio center. Please also check ongoing floating volatility patterns of GKHT Medical and Xiamen Goldenhome.
Diversification Opportunities for GKHT Medical and Xiamen Goldenhome
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GKHT and Xiamen is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding GKHT Medical Technology and Xiamen Goldenhome Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Goldenhome 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 Xiamen Goldenhome. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Goldenhome has no effect on the direction of GKHT Medical i.e., GKHT Medical and Xiamen Goldenhome go up and down completely randomly.
Pair Corralation between GKHT Medical and Xiamen Goldenhome
Assuming the 90 days trading horizon GKHT Medical Technology is expected to generate 2.1 times more return on investment than Xiamen Goldenhome. However, GKHT Medical is 2.1 times more volatile than Xiamen Goldenhome Co. It trades about 0.1 of its potential returns per unit of risk. Xiamen Goldenhome Co is currently generating about -0.14 per unit of risk. If you would invest 1,043 in GKHT Medical Technology on December 1, 2024 and sell it today you would earn a total of 54.00 from holding GKHT Medical Technology or generate 5.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GKHT Medical Technology vs. Xiamen Goldenhome Co
Performance |
| Timeline |
| GKHT Medical Technology |
| Xiamen Goldenhome |
GKHT Medical and Xiamen Goldenhome Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GKHT Medical and Xiamen Goldenhome
The main advantage of trading using opposite GKHT Medical and Xiamen Goldenhome positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GKHT Medical position performs unexpectedly, Xiamen Goldenhome 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 Xiamen Goldenhome will offset losses from the drop in Xiamen Goldenhome's long position.| GKHT Medical vs. Hubei Huaqiang High Tech | GKHT Medical vs. Touchstone International Medical | GKHT Medical vs. BrightGene Bio Medical | GKHT Medical vs. iSoftStone Information Technology |
| Xiamen Goldenhome vs. Queclink Wireless Solutions | Xiamen Goldenhome vs. Xinjiang Tianrun Dairy | Xiamen Goldenhome vs. New Hope Dairy | Xiamen Goldenhome vs. Jilin Jlu Communication |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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