Correlation Between GKHT Medical and Double Medical
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By analyzing existing cross correlation between GKHT Medical Technology and Double Medical Technology, you can compare the effects of market volatilities on GKHT Medical 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 GKHT Medical with a short position of Double Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of GKHT Medical and Double Medical.
Diversification Opportunities for GKHT Medical and Double Medical
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between GKHT and Double is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding GKHT Medical Technology 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 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 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 GKHT Medical i.e., GKHT Medical and Double Medical go up and down completely randomly.
Pair Corralation between GKHT Medical and Double Medical
Assuming the 90 days trading horizon GKHT Medical Technology is expected to generate 1.31 times more return on investment than Double Medical. However, GKHT Medical is 1.31 times more volatile than Double Medical Technology. It trades about 0.17 of its potential returns per unit of risk. Double Medical Technology is currently generating about 0.18 per unit of risk. If you would invest 891.00 in GKHT Medical Technology on September 14, 2024 and sell it today you would earn a total of 353.00 from holding GKHT Medical Technology or generate 39.62% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
GKHT Medical Technology vs. Double Medical Technology
Performance |
Timeline |
GKHT Medical Technology |
Double Medical Technology |
GKHT Medical and Double Medical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GKHT Medical and Double Medical
The main advantage of trading using opposite GKHT Medical and Double Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GKHT Medical 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.GKHT Medical vs. Industrial and Commercial | GKHT Medical vs. Kweichow Moutai Co | GKHT Medical vs. Agricultural Bank of | GKHT Medical 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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