Correlation Between Hengkang Medical and Citic Offshore
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By analyzing existing cross correlation between Hengkang Medical Group and Citic Offshore Helicopter, you can compare the effects of market volatilities on Hengkang Medical and Citic Offshore 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 Hengkang Medical with a short position of Citic Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengkang Medical and Citic Offshore.
Diversification Opportunities for Hengkang Medical and Citic Offshore
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hengkang and Citic is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Hengkang Medical Group and Citic Offshore Helicopter in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citic Offshore Helicopter and Hengkang Medical 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 Hengkang Medical Group are associated (or correlated) with Citic Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citic Offshore Helicopter has no effect on the direction of Hengkang Medical i.e., Hengkang Medical and Citic Offshore go up and down completely randomly.
Pair Corralation between Hengkang Medical and Citic Offshore
Assuming the 90 days trading horizon Hengkang Medical Group is expected to under-perform the Citic Offshore. In addition to that, Hengkang Medical is 1.15 times more volatile than Citic Offshore Helicopter. It trades about -0.1 of its total potential returns per unit of risk. Citic Offshore Helicopter is currently generating about -0.08 per unit of volatility. If you would invest 2,540 in Citic Offshore Helicopter on October 20, 2024 and sell it today you would lose (191.00) from holding Citic Offshore Helicopter or give up 7.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hengkang Medical Group vs. Citic Offshore Helicopter
Performance |
| Timeline |
| Hengkang Medical |
| Citic Offshore Helicopter |
Hengkang Medical and Citic Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengkang Medical and Citic Offshore
The main advantage of trading using opposite Hengkang Medical and Citic Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengkang Medical position performs unexpectedly, Citic Offshore 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 Citic Offshore will offset losses from the drop in Citic Offshore's long position.| Hengkang Medical vs. Lecron Energy Saving | Hengkang Medical vs. Lander Sports Development | Hengkang Medical vs. China Everbright Bank | Hengkang Medical vs. Qilu Bank Co |
| Citic Offshore vs. Anhui Tongguan Copper | Citic Offshore vs. Zhengzhou Coal Mining | Citic Offshore vs. Quectel Wireless Solutions | Citic Offshore vs. Fibocom Wireless |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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