Correlation Between Zhongtong Guomai and Double Medical
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By analyzing existing cross correlation between Zhongtong Guomai Communication and Double Medical Technology, you can compare the effects of market volatilities on Zhongtong Guomai 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 Zhongtong Guomai with a short position of Double Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongtong Guomai and Double Medical.
Diversification Opportunities for Zhongtong Guomai and Double Medical
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhongtong and Double is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Zhongtong Guomai Communication 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 Zhongtong Guomai 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 Zhongtong Guomai Communication 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 Zhongtong Guomai i.e., Zhongtong Guomai and Double Medical go up and down completely randomly.
Pair Corralation between Zhongtong Guomai and Double Medical
Assuming the 90 days trading horizon Zhongtong Guomai Communication is expected to generate 2.47 times more return on investment than Double Medical. However, Zhongtong Guomai is 2.47 times more volatile than Double Medical Technology. It trades about 0.04 of its potential returns per unit of risk. Double Medical Technology is currently generating about -0.12 per unit of risk. If you would invest 1,100 in Zhongtong Guomai Communication on September 2, 2024 and sell it today you would earn a total of 21.00 from holding Zhongtong Guomai Communication or generate 1.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongtong Guomai Communication vs. Double Medical Technology
Performance |
| Timeline |
| Zhongtong Guomai Com |
| Double Medical Technology |
Zhongtong Guomai and Double Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongtong Guomai and Double Medical
The main advantage of trading using opposite Zhongtong Guomai and Double Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongtong Guomai 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.| Zhongtong Guomai vs. China Petroleum Chemical | Zhongtong Guomai vs. PetroChina Co Ltd | Zhongtong Guomai vs. China State Construction | Zhongtong Guomai vs. China Railway Group |
| Double Medical vs. Zhongtong Guomai Communication | Double Medical vs. SUNSEA Telecommunications Co | Double Medical vs. Dr Peng Telecom | Double Medical vs. Wuhan Yangtze 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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