Correlation Between Ye Chiu and Double Medical

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Ye Chiu and Double Medical at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Ye Chiu and Double Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ye Chiu Metal and Double Medical Technology, you can compare the effects of market volatilities on Ye Chiu 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 Ye Chiu with a short position of Double Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ye Chiu and Double Medical.

Diversification Opportunities for Ye Chiu and Double Medical

0.2
  Correlation Coefficient

Modest diversification

The 3 months correlation between 601388 and Double is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Ye Chiu Metal 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 Ye Chiu 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 Ye Chiu Metal 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 Ye Chiu i.e., Ye Chiu and Double Medical go up and down completely randomly.

Pair Corralation between Ye Chiu and Double Medical

Assuming the 90 days trading horizon Ye Chiu Metal is expected to under-perform the Double Medical. In addition to that, Ye Chiu is 2.02 times more volatile than Double Medical Technology. It trades about -0.38 of its total potential returns per unit of risk. Double Medical Technology is currently generating about -0.37 per unit of volatility. If you would invest  3,248  in Double Medical Technology on October 8, 2024 and sell it today you would lose (278.00) from holding Double Medical Technology or give up 8.56% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Ye Chiu Metal  vs.  Double Medical Technology

 Performance 
       Timeline  
Ye Chiu Metal 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Ye Chiu Metal has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.
Double Medical Technology 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Double Medical Technology has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Ye Chiu and Double Medical Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Ye Chiu and Double Medical

The main advantage of trading using opposite Ye Chiu and Double Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ye Chiu 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.
The idea behind Ye Chiu Metal and Double Medical Technology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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.

Other Complementary Tools

Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments