Correlation Between Wuxi Chemical and Hengkang Medical
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By analyzing existing cross correlation between Wuxi Chemical Equipment and Hengkang Medical Group, you can compare the effects of market volatilities on Wuxi Chemical 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 Wuxi Chemical with a short position of Hengkang Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuxi Chemical and Hengkang Medical.
Diversification Opportunities for Wuxi Chemical and Hengkang Medical
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Wuxi and Hengkang is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Wuxi Chemical Equipment and Hengkang Medical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengkang Medical and Wuxi Chemical 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 Wuxi Chemical Equipment 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 Wuxi Chemical i.e., Wuxi Chemical and Hengkang Medical go up and down completely randomly.
Pair Corralation between Wuxi Chemical and Hengkang Medical
Assuming the 90 days trading horizon Wuxi Chemical Equipment is expected to generate 0.89 times more return on investment than Hengkang Medical. However, Wuxi Chemical Equipment is 1.12 times less risky than Hengkang Medical. It trades about -0.01 of its potential returns per unit of risk. Hengkang Medical Group is currently generating about -0.03 per unit of risk. If you would invest 4,337 in Wuxi Chemical Equipment on October 16, 2024 and sell it today you would lose (1,041) from holding Wuxi Chemical Equipment or give up 24.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuxi Chemical Equipment vs. Hengkang Medical Group
Performance |
| Timeline |
| Wuxi Chemical Equipment |
| Hengkang Medical |
Wuxi Chemical and Hengkang Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuxi Chemical and Hengkang Medical
The main advantage of trading using opposite Wuxi Chemical and Hengkang Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuxi Chemical 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.| Wuxi Chemical vs. China Sports Industry | Wuxi Chemical vs. Guosheng Financial Holding | Wuxi Chemical vs. Shenzhen AV Display Co | Wuxi Chemical vs. Fibocom Wireless |
| Hengkang Medical vs. HeBei Jinniu Chemical | Hengkang Medical vs. Dymatic Chemicals | Hengkang Medical vs. Wuxi Chemical Equipment | Hengkang Medical vs. China Life Insurance |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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