Correlation Between Western Metal and Hengkang Medical
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By analyzing existing cross correlation between Western Metal Materials and Hengkang Medical Group, you can compare the effects of market volatilities on Western Metal 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 Western Metal with a short position of Hengkang Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Metal and Hengkang Medical.
Diversification Opportunities for Western Metal and Hengkang Medical
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Western and Hengkang is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Western Metal Materials and Hengkang Medical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengkang Medical and Western Metal 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 Western Metal Materials 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 Western Metal i.e., Western Metal and Hengkang Medical go up and down completely randomly.
Pair Corralation between Western Metal and Hengkang Medical
Assuming the 90 days trading horizon Western Metal Materials is expected to generate 1.77 times more return on investment than Hengkang Medical. However, Western Metal is 1.77 times more volatile than Hengkang Medical Group. It trades about 0.03 of its potential returns per unit of risk. Hengkang Medical Group is currently generating about -0.09 per unit of risk. If you would invest 1,687 in Western Metal Materials on November 3, 2024 and sell it today you would earn a total of 13.00 from holding Western Metal Materials or generate 0.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Metal Materials vs. Hengkang Medical Group
Performance |
| Timeline |
| Western Metal Materials |
| Hengkang Medical |
Western Metal and Hengkang Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Metal and Hengkang Medical
The main advantage of trading using opposite Western Metal and Hengkang Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Metal 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.| Western Metal vs. JCHX Mining Management | Western Metal vs. Guosheng Financial Holding | Western Metal vs. Hefei Metalforming Mach | Western Metal vs. Anhui Tongguan Copper |
| Hengkang Medical vs. East Money Information | Hengkang Medical vs. Tibet Huayu Mining | Hengkang Medical vs. Guangzhou Ruoyuchen Information | Hengkang Medical vs. Wonders Information |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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