Correlation Between Meinian Onehealth and Hefei Metalforming
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By analyzing existing cross correlation between Meinian Onehealth Healthcare and Hefei Metalforming Mach, you can compare the effects of market volatilities on Meinian Onehealth and Hefei Metalforming 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 Hefei Metalforming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meinian Onehealth and Hefei Metalforming.
Diversification Opportunities for Meinian Onehealth and Hefei Metalforming
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Meinian and Hefei is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Meinian Onehealth Healthcare and Hefei Metalforming Mach in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hefei Metalforming Mach 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 Hefei Metalforming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hefei Metalforming Mach has no effect on the direction of Meinian Onehealth i.e., Meinian Onehealth and Hefei Metalforming go up and down completely randomly.
Pair Corralation between Meinian Onehealth and Hefei Metalforming
Assuming the 90 days trading horizon Meinian Onehealth Healthcare is expected to under-perform the Hefei Metalforming. But the stock apears to be less risky and, when comparing its historical volatility, Meinian Onehealth Healthcare is 1.4 times less risky than Hefei Metalforming. The stock trades about -0.03 of its potential returns per unit of risk. The Hefei Metalforming Mach is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 894.00 in Hefei Metalforming Mach on October 13, 2024 and sell it today you would lose (228.00) from holding Hefei Metalforming Mach or give up 25.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meinian Onehealth Healthcare vs. Hefei Metalforming Mach
Performance |
| Timeline |
| Meinian Onehealth |
| Hefei Metalforming Mach |
Meinian Onehealth and Hefei Metalforming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meinian Onehealth and Hefei Metalforming
The main advantage of trading using opposite Meinian Onehealth and Hefei Metalforming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meinian Onehealth position performs unexpectedly, Hefei Metalforming 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 Hefei Metalforming will offset losses from the drop in Hefei Metalforming's long position.| Meinian Onehealth vs. Fiberhome Telecommunication Technologies | Meinian Onehealth vs. FSPG Hi Tech Co | Meinian Onehealth vs. Guocheng Mining Co | Meinian Onehealth vs. Hangzhou Arcvideo Technology |
| Hefei Metalforming vs. Dezhan HealthCare Co | Hefei Metalforming vs. Shandong Sinoglory Health | Hefei Metalforming vs. Eastroc Beverage Group | Hefei Metalforming vs. Shanghai Rongtai Health |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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