Correlation Between Asia Medical and DOHOME
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By analyzing existing cross correlation between Asia Medical Agricultural and DOHOME, you can compare the effects of market volatilities on Asia Medical and DOHOME 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 Asia Medical with a short position of DOHOME. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Medical and DOHOME.
Diversification Opportunities for Asia Medical and DOHOME
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Asia and DOHOME is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Asia Medical Agricultural and DOHOME in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DOHOME and Asia Medical 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 Asia Medical Agricultural are associated (or correlated) with DOHOME. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DOHOME has no effect on the direction of Asia Medical i.e., Asia Medical and DOHOME go up and down completely randomly.
Pair Corralation between Asia Medical and DOHOME
Assuming the 90 days trading horizon Asia Medical Agricultural is expected to generate 0.31 times more return on investment than DOHOME. However, Asia Medical Agricultural is 3.18 times less risky than DOHOME. It trades about 0.05 of its potential returns per unit of risk. DOHOME is currently generating about -0.12 per unit of risk. If you would invest 115.00 in Asia Medical Agricultural on December 11, 2024 and sell it today you would earn a total of 2.00 from holding Asia Medical Agricultural or generate 1.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asia Medical Agricultural vs. DOHOME
Performance |
| Timeline |
| Asia Medical Agricultural |
| DOHOME |
Asia Medical and DOHOME Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asia Medical and DOHOME
The main advantage of trading using opposite Asia Medical and DOHOME positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Medical position performs unexpectedly, DOHOME 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 DOHOME will offset losses from the drop in DOHOME's long position.| Asia Medical vs. Asian Alliance International | Asia Medical vs. International Network System | Asia Medical vs. The Klinique Med | Asia Medical vs. Exotic Food Public |
| DOHOME vs. Silicon Craft Technology | DOHOME vs. TMT Steel Public | DOHOME vs. Somboon Advance Technology | DOHOME vs. Sun Vending Technology |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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