Correlation Between Hunan Fangsheng and Double Medical
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By analyzing existing cross correlation between Hunan Fangsheng Pharm and Double Medical Technology, you can compare the effects of market volatilities on Hunan Fangsheng 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 Hunan Fangsheng with a short position of Double Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Fangsheng and Double Medical.
Diversification Opportunities for Hunan Fangsheng and Double Medical
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hunan and Double is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Fangsheng Pharm 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 Hunan Fangsheng 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 Hunan Fangsheng Pharm 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 Hunan Fangsheng i.e., Hunan Fangsheng and Double Medical go up and down completely randomly.
Pair Corralation between Hunan Fangsheng and Double Medical
Assuming the 90 days trading horizon Hunan Fangsheng Pharm is expected to under-perform the Double Medical. In addition to that, Hunan Fangsheng is 1.22 times more volatile than Double Medical Technology. It trades about -0.16 of its total potential returns per unit of risk. Double Medical Technology is currently generating about -0.17 per unit of volatility. If you would invest 3,472 in Double Medical Technology on September 13, 2024 and sell it today you would lose (232.00) from holding Double Medical Technology or give up 6.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Fangsheng Pharm vs. Double Medical Technology
Performance |
| Timeline |
| Hunan Fangsheng Pharm |
| Double Medical Technology |
Hunan Fangsheng and Double Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Fangsheng and Double Medical
The main advantage of trading using opposite Hunan Fangsheng and Double Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Fangsheng 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.| Hunan Fangsheng vs. BeiGene | Hunan Fangsheng vs. Kweichow Moutai Co | Hunan Fangsheng vs. Beijing Roborock Technology | Hunan Fangsheng vs. G bits Network Technology |
| Double Medical vs. Industrial and Commercial | Double Medical vs. Kweichow Moutai Co | Double Medical vs. Agricultural Bank of | Double Medical vs. China Mobile Limited |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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