Correlation Between RoadMain T and GKHT Medical
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By analyzing existing cross correlation between RoadMain T Co and GKHT Medical Technology, you can compare the effects of market volatilities on RoadMain T and GKHT 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 RoadMain T with a short position of GKHT Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of RoadMain T and GKHT Medical.
Diversification Opportunities for RoadMain T and GKHT Medical
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between RoadMain and GKHT is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding RoadMain T Co and GKHT Medical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GKHT Medical Technology and RoadMain T 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 RoadMain T Co are associated (or correlated) with GKHT Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GKHT Medical Technology has no effect on the direction of RoadMain T i.e., RoadMain T and GKHT Medical go up and down completely randomly.
Pair Corralation between RoadMain T and GKHT Medical
Assuming the 90 days trading horizon RoadMain T Co is expected to under-perform the GKHT Medical. But the stock apears to be less risky and, when comparing its historical volatility, RoadMain T Co is 1.21 times less risky than GKHT Medical. The stock trades about -0.07 of its potential returns per unit of risk. The GKHT Medical Technology is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,192 in GKHT Medical Technology on September 5, 2024 and sell it today you would earn a total of 11.00 from holding GKHT Medical Technology or generate 0.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
RoadMain T Co vs. GKHT Medical Technology
Performance |
| Timeline |
| RoadMain T |
| GKHT Medical Technology |
RoadMain T and GKHT Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RoadMain T and GKHT Medical
The main advantage of trading using opposite RoadMain T and GKHT Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RoadMain T position performs unexpectedly, GKHT 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 GKHT Medical will offset losses from the drop in GKHT Medical's long position.| RoadMain T vs. Industrial and Commercial | RoadMain T vs. Agricultural Bank of | RoadMain T vs. China Construction Bank | RoadMain T vs. Bank of China |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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