Correlation Between GKHT Medical and Success Electronics
Specify exactly 2 symbols:
By analyzing existing cross correlation between GKHT Medical Technology and Success Electronics, you can compare the effects of market volatilities on GKHT Medical and Success Electronics 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 GKHT Medical with a short position of Success Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of GKHT Medical and Success Electronics.
Diversification Opportunities for GKHT Medical and Success Electronics
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GKHT and Success is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding GKHT Medical Technology and Success Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Success Electronics and GKHT 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 GKHT Medical Technology are associated (or correlated) with Success Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Success Electronics has no effect on the direction of GKHT Medical i.e., GKHT Medical and Success Electronics go up and down completely randomly.
Pair Corralation between GKHT Medical and Success Electronics
Assuming the 90 days trading horizon GKHT Medical Technology is expected to under-perform the Success Electronics. But the stock apears to be less risky and, when comparing its historical volatility, GKHT Medical Technology is 1.21 times less risky than Success Electronics. The stock trades about -0.06 of its potential returns per unit of risk. The Success Electronics is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 379.00 in Success Electronics on September 25, 2024 and sell it today you would earn a total of 6.00 from holding Success Electronics or generate 1.58% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 95.45% |
Values | Daily Returns |
GKHT Medical Technology vs. Success Electronics
Performance |
Timeline |
GKHT Medical Technology |
Success Electronics |
GKHT Medical and Success Electronics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GKHT Medical and Success Electronics
The main advantage of trading using opposite GKHT Medical and Success Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GKHT Medical position performs unexpectedly, Success Electronics 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 Success Electronics will offset losses from the drop in Success Electronics' long position.GKHT Medical vs. New China Life | GKHT Medical vs. Ming Yang Smart | GKHT Medical vs. 159681 | GKHT Medical vs. 159005 |
Success Electronics vs. Kontour Medical Technology | Success Electronics vs. Time Publishing and | Success Electronics vs. Heilongjiang Publishing Media | Success Electronics vs. GKHT Medical 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |