Correlation Between Nanjing Medlander and Double Medical
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By analyzing existing cross correlation between Nanjing Medlander Medical and Double Medical Technology, you can compare the effects of market volatilities on Nanjing Medlander 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 Nanjing Medlander with a short position of Double Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Medlander and Double Medical.
Diversification Opportunities for Nanjing Medlander and Double Medical
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Nanjing and Double is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Medlander Medical 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 Nanjing Medlander 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 Nanjing Medlander Medical 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 Nanjing Medlander i.e., Nanjing Medlander and Double Medical go up and down completely randomly.
Pair Corralation between Nanjing Medlander and Double Medical
Assuming the 90 days trading horizon Nanjing Medlander Medical is expected to generate 1.22 times more return on investment than Double Medical. However, Nanjing Medlander is 1.22 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 -0.17 per unit of risk. If you would invest 2,673 in Nanjing Medlander Medical on September 13, 2024 and sell it today you would lose (68.00) from holding Nanjing Medlander Medical or give up 2.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Medlander Medical vs. Double Medical Technology
Performance |
| Timeline |
| Nanjing Medlander Medical |
| Double Medical Technology |
Nanjing Medlander and Double Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Medlander and Double Medical
The main advantage of trading using opposite Nanjing Medlander and Double Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Medlander 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.| Nanjing Medlander vs. Industrial and Commercial | Nanjing Medlander vs. Kweichow Moutai Co | Nanjing Medlander vs. Agricultural Bank of | Nanjing Medlander vs. China Mobile Limited |
| 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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