Correlation Between Hengkang Medical and Allwin Telecommunicatio
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By analyzing existing cross correlation between Hengkang Medical Group and Allwin Telecommunication Co, you can compare the effects of market volatilities on Hengkang Medical and Allwin Telecommunicatio 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 Allwin Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengkang Medical and Allwin Telecommunicatio.
Diversification Opportunities for Hengkang Medical and Allwin Telecommunicatio
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hengkang and Allwin is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Hengkang Medical Group and Allwin Telecommunication Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allwin Telecommunicatio 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 Allwin Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allwin Telecommunicatio has no effect on the direction of Hengkang Medical i.e., Hengkang Medical and Allwin Telecommunicatio go up and down completely randomly.
Pair Corralation between Hengkang Medical and Allwin Telecommunicatio
Assuming the 90 days trading horizon Hengkang Medical Group is expected to under-perform the Allwin Telecommunicatio. But the stock apears to be less risky and, when comparing its historical volatility, Hengkang Medical Group is 1.26 times less risky than Allwin Telecommunicatio. The stock trades about -0.21 of its potential returns per unit of risk. The Allwin Telecommunication Co is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 566.00 in Allwin Telecommunication Co on October 29, 2024 and sell it today you would lose (23.00) from holding Allwin Telecommunication Co or give up 4.06% 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. Allwin Telecommunication Co
Performance |
| Timeline |
| Hengkang Medical |
| Allwin Telecommunicatio |
Hengkang Medical and Allwin Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengkang Medical and Allwin Telecommunicatio
The main advantage of trading using opposite Hengkang Medical and Allwin Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengkang Medical position performs unexpectedly, Allwin Telecommunicatio 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 Allwin Telecommunicatio will offset losses from the drop in Allwin Telecommunicatio's long position.| Hengkang Medical vs. Linzhou Heavy Machinery | Hengkang Medical vs. Xiangyang Automobile Bearing | Hengkang Medical vs. Ningbo Fangzheng Automobile | Hengkang Medical vs. Changchun Engley Automobile |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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