Correlation Between Meinian Onehealth and Xiangtan Electrochemical
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By analyzing existing cross correlation between Meinian Onehealth Healthcare and Xiangtan Electrochemical Scientific, you can compare the effects of market volatilities on Meinian Onehealth and Xiangtan Electrochemical 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 Xiangtan Electrochemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meinian Onehealth and Xiangtan Electrochemical.
Diversification Opportunities for Meinian Onehealth and Xiangtan Electrochemical
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Meinian and Xiangtan is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Meinian Onehealth Healthcare and Xiangtan Electrochemical Scien in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangtan Electrochemical 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 Xiangtan Electrochemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiangtan Electrochemical has no effect on the direction of Meinian Onehealth i.e., Meinian Onehealth and Xiangtan Electrochemical go up and down completely randomly.
Pair Corralation between Meinian Onehealth and Xiangtan Electrochemical
Assuming the 90 days trading horizon Meinian Onehealth Healthcare is expected to generate 0.97 times more return on investment than Xiangtan Electrochemical. However, Meinian Onehealth Healthcare is 1.03 times less risky than Xiangtan Electrochemical. It trades about 0.07 of its potential returns per unit of risk. Xiangtan Electrochemical Scientific is currently generating about 0.06 per unit of risk. If you would invest 368.00 in Meinian Onehealth Healthcare on November 7, 2024 and sell it today you would earn a total of 68.00 from holding Meinian Onehealth Healthcare or generate 18.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meinian Onehealth Healthcare vs. Xiangtan Electrochemical Scien
Performance |
| Timeline |
| Meinian Onehealth |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Xiangtan Electrochemical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Meinian Onehealth and Xiangtan Electrochemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meinian Onehealth and Xiangtan Electrochemical
The main advantage of trading using opposite Meinian Onehealth and Xiangtan Electrochemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meinian Onehealth position performs unexpectedly, Xiangtan Electrochemical 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 Xiangtan Electrochemical will offset losses from the drop in Xiangtan Electrochemical's long position.The idea behind Meinian Onehealth Healthcare and Xiangtan Electrochemical Scientific 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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