Correlation Between Meinian Onehealth and Chengdu Kanghua
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By analyzing existing cross correlation between Meinian Onehealth Healthcare and Chengdu Kanghua Biological, you can compare the effects of market volatilities on Meinian Onehealth and Chengdu Kanghua 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 Chengdu Kanghua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meinian Onehealth and Chengdu Kanghua.
Diversification Opportunities for Meinian Onehealth and Chengdu Kanghua
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Meinian and Chengdu is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Meinian Onehealth Healthcare and Chengdu Kanghua Biological in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Kanghua Biol 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 Chengdu Kanghua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Kanghua Biol has no effect on the direction of Meinian Onehealth i.e., Meinian Onehealth and Chengdu Kanghua go up and down completely randomly.
Pair Corralation between Meinian Onehealth and Chengdu Kanghua
Assuming the 90 days trading horizon Meinian Onehealth Healthcare is expected to under-perform the Chengdu Kanghua. But the stock apears to be less risky and, when comparing its historical volatility, Meinian Onehealth Healthcare is 1.33 times less risky than Chengdu Kanghua. The stock trades about -0.03 of its potential returns per unit of risk. The Chengdu Kanghua Biological is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 5,394 in Chengdu Kanghua Biological on September 12, 2024 and sell it today you would earn a total of 416.00 from holding Chengdu Kanghua Biological or generate 7.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meinian Onehealth Healthcare vs. Chengdu Kanghua Biological
Performance |
| Timeline |
| Meinian Onehealth |
| Chengdu Kanghua Biol |
Meinian Onehealth and Chengdu Kanghua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meinian Onehealth and Chengdu Kanghua
The main advantage of trading using opposite Meinian Onehealth and Chengdu Kanghua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meinian Onehealth position performs unexpectedly, Chengdu Kanghua 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 Chengdu Kanghua will offset losses from the drop in Chengdu Kanghua's long position.| Meinian Onehealth vs. Cultural Investment Holdings | Meinian Onehealth vs. Gome Telecom Equipment | Meinian Onehealth vs. Holitech Technology Co | Meinian Onehealth vs. Zotye Automobile Co |
| Chengdu Kanghua vs. Heilongjiang Publishing Media | Chengdu Kanghua vs. China Publishing Media | Chengdu Kanghua vs. Qtone Education Group | Chengdu Kanghua vs. XinJiang GuoTong Pipeline |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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