Correlation Between Longjian Road and Double Medical
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By analyzing existing cross correlation between Longjian Road Bridge and Double Medical Technology, you can compare the effects of market volatilities on Longjian Road and Double Medical 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 Longjian Road with a short position of Double Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Longjian Road and Double Medical.
Diversification Opportunities for Longjian Road and Double Medical
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Longjian and Double is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Longjian Road Bridge and Double Medical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Double Medical Technology and Longjian Road 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 Longjian Road Bridge are associated (or correlated) with Double Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Double Medical Technology has no effect on the direction of Longjian Road i.e., Longjian Road and Double Medical go up and down completely randomly.
Pair Corralation between Longjian Road and Double Medical
Assuming the 90 days trading horizon Longjian Road Bridge is expected to generate 1.02 times more return on investment than Double Medical. However, Longjian Road is 1.02 times more volatile than Double Medical Technology. It trades about -0.03 of its potential returns per unit of risk. Double Medical Technology is currently generating about -0.13 per unit of risk. If you would invest 381.00 in Longjian Road Bridge on August 28, 2024 and sell it today you would lose (6.00) from holding Longjian Road Bridge or give up 1.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Longjian Road Bridge vs. Double Medical Technology
Performance |
| Timeline |
| Longjian Road Bridge |
| Double Medical Technology |
Longjian Road and Double Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Longjian Road and Double Medical
The main advantage of trading using opposite Longjian Road and Double Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Longjian Road position performs unexpectedly, Double Medical 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 Double Medical will offset losses from the drop in Double Medical's long position.| Longjian Road vs. Guangzhou Jinyi Media | Longjian Road vs. Nexchip Semiconductor Corp | Longjian Road vs. Northern United Publishing | Longjian Road vs. Sportsoul Co Ltd |
| Double Medical vs. Dazhong Transportation Group | Double Medical vs. Lander Sports Development | Double Medical vs. Kingsignal Technology Co | Double Medical vs. Jiugui Liquor Co |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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