Correlation Between Hengkang Medical and Advanced Technology
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By analyzing existing cross correlation between Hengkang Medical Group and Advanced Technology Materials, you can compare the effects of market volatilities on Hengkang Medical and Advanced Technology 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 Advanced Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengkang Medical and Advanced Technology.
Diversification Opportunities for Hengkang Medical and Advanced Technology
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hengkang and Advanced is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Hengkang Medical Group and Advanced Technology Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Technology 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 Advanced Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Technology has no effect on the direction of Hengkang Medical i.e., Hengkang Medical and Advanced Technology go up and down completely randomly.
Pair Corralation between Hengkang Medical and Advanced Technology
Assuming the 90 days trading horizon Hengkang Medical Group is expected to under-perform the Advanced Technology. But the stock apears to be less risky and, when comparing its historical volatility, Hengkang Medical Group is 1.35 times less risky than Advanced Technology. The stock trades about -0.14 of its potential returns per unit of risk. The Advanced Technology Materials is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,115 in Advanced Technology Materials on November 1, 2024 and sell it today you would earn a total of 37.00 from holding Advanced Technology Materials or generate 3.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hengkang Medical Group vs. Advanced Technology Materials
Performance |
| Timeline |
| Hengkang Medical |
| Advanced Technology |
Hengkang Medical and Advanced Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengkang Medical and Advanced Technology
The main advantage of trading using opposite Hengkang Medical and Advanced Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengkang Medical position performs unexpectedly, Advanced Technology 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 Advanced Technology will offset losses from the drop in Advanced Technology's long position.| Hengkang Medical vs. Easyhome New Retail | Hengkang Medical vs. HaiXin Foods Co | Hengkang Medical vs. Gan Yuan Foods | Hengkang Medical vs. Eastroc Beverage Group |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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