Correlation Between Hengkang Medical and Guocheng Mining
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By analyzing existing cross correlation between Hengkang Medical Group and Guocheng Mining Co, you can compare the effects of market volatilities on Hengkang Medical and Guocheng Mining 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 Guocheng Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengkang Medical and Guocheng Mining.
Diversification Opportunities for Hengkang Medical and Guocheng Mining
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hengkang and Guocheng is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Hengkang Medical Group and Guocheng Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guocheng Mining 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 Guocheng Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guocheng Mining has no effect on the direction of Hengkang Medical i.e., Hengkang Medical and Guocheng Mining go up and down completely randomly.
Pair Corralation between Hengkang Medical and Guocheng Mining
Assuming the 90 days trading horizon Hengkang Medical Group is expected to generate 1.09 times more return on investment than Guocheng Mining. However, Hengkang Medical is 1.09 times more volatile than Guocheng Mining Co. It trades about -0.03 of its potential returns per unit of risk. Guocheng Mining Co is currently generating about -0.1 per unit of risk. If you would invest 270.00 in Hengkang Medical Group on October 30, 2024 and sell it today you would lose (22.00) from holding Hengkang Medical Group or give up 8.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hengkang Medical Group vs. Guocheng Mining Co
Performance |
| Timeline |
| Hengkang Medical |
| Guocheng Mining |
Hengkang Medical and Guocheng Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengkang Medical and Guocheng Mining
The main advantage of trading using opposite Hengkang Medical and Guocheng Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengkang Medical position performs unexpectedly, Guocheng Mining 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 Guocheng Mining will offset losses from the drop in Guocheng Mining's long position.| Hengkang Medical vs. Railway Signal Communication | Hengkang Medical vs. Hongrun Construction Group | Hengkang Medical vs. Guangzhou Haige Communications | Hengkang Medical vs. Wintao Communications Co |
| Guocheng Mining vs. UCloud Technology Co | Guocheng Mining vs. Dymatic Chemicals | Guocheng Mining vs. Northking Information Technology | Guocheng Mining vs. Jinyu Bio Technology Co |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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