Correlation Between Meinian Onehealth and ZTE Corp
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By analyzing existing cross correlation between Meinian Onehealth Healthcare and ZTE Corp, you can compare the effects of market volatilities on Meinian Onehealth and ZTE Corp 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 Meinian Onehealth with a short position of ZTE Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meinian Onehealth and ZTE Corp.
Diversification Opportunities for Meinian Onehealth and ZTE Corp
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Meinian and ZTE is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Meinian Onehealth Healthcare and ZTE Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZTE Corp and Meinian Onehealth 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 Meinian Onehealth Healthcare are associated (or correlated) with ZTE Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZTE Corp has no effect on the direction of Meinian Onehealth i.e., Meinian Onehealth and ZTE Corp go up and down completely randomly.
Pair Corralation between Meinian Onehealth and ZTE Corp
Assuming the 90 days trading horizon Meinian Onehealth Healthcare is expected to under-perform the ZTE Corp. But the stock apears to be less risky and, when comparing its historical volatility, Meinian Onehealth Healthcare is 2.37 times less risky than ZTE Corp. The stock trades about -0.44 of its potential returns per unit of risk. The ZTE Corp is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 3,113 in ZTE Corp on October 11, 2024 and sell it today you would earn a total of 724.00 from holding ZTE Corp or generate 23.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meinian Onehealth Healthcare vs. ZTE Corp
Performance |
| Timeline |
| Meinian Onehealth |
| ZTE Corp |
Meinian Onehealth and ZTE Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meinian Onehealth and ZTE Corp
The main advantage of trading using opposite Meinian Onehealth and ZTE Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meinian Onehealth position performs unexpectedly, ZTE Corp 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 ZTE Corp will offset losses from the drop in ZTE Corp's long position.| Meinian Onehealth vs. Guangdong Transtek Medical | Meinian Onehealth vs. China Publishing Media | Meinian Onehealth vs. Shanghai Action Education | Meinian Onehealth vs. Touchstone International Medical |
| ZTE Corp vs. Meinian Onehealth Healthcare | ZTE Corp vs. Anhui Huaren Health | ZTE Corp vs. Lontium Semiconductor Corp | ZTE Corp vs. Will Semiconductor Co |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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