Correlation Between WuXi Xinje and Double Medical
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By analyzing existing cross correlation between WuXi Xinje Electric and Double Medical Technology, you can compare the effects of market volatilities on WuXi Xinje 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 WuXi Xinje with a short position of Double Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of WuXi Xinje and Double Medical.
Diversification Opportunities for WuXi Xinje and Double Medical
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between WuXi and Double is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding WuXi Xinje Electric 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 WuXi Xinje 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 WuXi Xinje Electric 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 WuXi Xinje i.e., WuXi Xinje and Double Medical go up and down completely randomly.
Pair Corralation between WuXi Xinje and Double Medical
Assuming the 90 days trading horizon WuXi Xinje is expected to generate 2.0 times less return on investment than Double Medical. But when comparing it to its historical volatility, WuXi Xinje Electric is 1.09 times less risky than Double Medical. It trades about 0.12 of its potential returns per unit of risk. Double Medical Technology is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 3,103 in Double Medical Technology on October 30, 2024 and sell it today you would earn a total of 409.00 from holding Double Medical Technology or generate 13.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
WuXi Xinje Electric vs. Double Medical Technology
Performance |
| Timeline |
| WuXi Xinje Electric |
| Double Medical Technology |
WuXi Xinje and Double Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WuXi Xinje and Double Medical
The main advantage of trading using opposite WuXi Xinje and Double Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WuXi Xinje 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.| WuXi Xinje vs. UCloud Technology Co | WuXi Xinje vs. Hubei Geoway Investment | WuXi Xinje vs. Holitech Technology Co | WuXi Xinje vs. Maxvision Technology Corp |
| Double Medical vs. Agricultural Bank of | Double Medical vs. Industrial and Commercial | Double Medical vs. Bank of China | Double Medical vs. China Construction Bank |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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