Correlation Between China Securities and Hengkang Medical
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By analyzing existing cross correlation between China Securities 800 and Hengkang Medical Group, you can compare the effects of market volatilities on China Securities and Hengkang 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 China Securities with a short position of Hengkang Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Hengkang Medical.
Diversification Opportunities for China Securities and Hengkang Medical
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Hengkang is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Hengkang Medical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengkang Medical and China Securities 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 China Securities 800 are associated (or correlated) with Hengkang Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengkang Medical has no effect on the direction of China Securities i.e., China Securities and Hengkang Medical go up and down completely randomly.
Pair Corralation between China Securities and Hengkang Medical
Assuming the 90 days trading horizon China Securities is expected to generate 2.33 times less return on investment than Hengkang Medical. But when comparing it to its historical volatility, China Securities 800 is 1.79 times less risky than Hengkang Medical. It trades about 0.14 of its potential returns per unit of risk. Hengkang Medical Group is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 175.00 in Hengkang Medical Group on August 28, 2024 and sell it today you would earn a total of 85.00 from holding Hengkang Medical Group or generate 48.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. Hengkang Medical Group
Performance |
| Timeline |
China Securities and Hengkang Medical Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Hengkang Medical Group
Pair trading matchups for Hengkang Medical
Pair Trading with China Securities and Hengkang Medical
The main advantage of trading using opposite China Securities and Hengkang Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Hengkang 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 Hengkang Medical will offset losses from the drop in Hengkang Medical's long position.| China Securities vs. Shandong Ruifeng Chemical | China Securities vs. Zhongtong Guomai Communication | China Securities vs. Gome Telecom Equipment | China Securities vs. Dymatic Chemicals |
| Hengkang Medical vs. Industrial and Commercial | Hengkang Medical vs. Agricultural Bank of | Hengkang Medical vs. China Construction Bank | Hengkang Medical vs. Bank of China |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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