Correlation Between Hengkang Medical and Zhongshan Broad
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By analyzing existing cross correlation between Hengkang Medical Group and Zhongshan Broad Ocean Motor, you can compare the effects of market volatilities on Hengkang Medical and Zhongshan Broad 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 Zhongshan Broad. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengkang Medical and Zhongshan Broad.
Diversification Opportunities for Hengkang Medical and Zhongshan Broad
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hengkang and Zhongshan is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Hengkang Medical Group and Zhongshan Broad Ocean Motor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongshan Broad Ocean 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 Zhongshan Broad. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongshan Broad Ocean has no effect on the direction of Hengkang Medical i.e., Hengkang Medical and Zhongshan Broad go up and down completely randomly.
Pair Corralation between Hengkang Medical and Zhongshan Broad
Assuming the 90 days trading horizon Hengkang Medical Group is expected to under-perform the Zhongshan Broad. In addition to that, Hengkang Medical is 1.59 times more volatile than Zhongshan Broad Ocean Motor. It trades about -0.21 of its total potential returns per unit of risk. Zhongshan Broad Ocean Motor is currently generating about -0.06 per unit of volatility. If you would invest 566.00 in Zhongshan Broad Ocean Motor on October 15, 2024 and sell it today you would lose (24.00) from holding Zhongshan Broad Ocean Motor or give up 4.24% 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. Zhongshan Broad Ocean Motor
Performance |
| Timeline |
| Hengkang Medical |
| Zhongshan Broad Ocean |
Hengkang Medical and Zhongshan Broad Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengkang Medical and Zhongshan Broad
The main advantage of trading using opposite Hengkang Medical and Zhongshan Broad positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengkang Medical position performs unexpectedly, Zhongshan Broad 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 Zhongshan Broad will offset losses from the drop in Zhongshan Broad's long position.| Hengkang Medical vs. Guangzhou Restaurants Group | Hengkang Medical vs. CITIC Guoan Information | Hengkang Medical vs. East Money Information | Hengkang Medical vs. Zhongfu Information |
| Zhongshan Broad vs. Eyebright Medical Technology | Zhongshan Broad vs. Hengkang Medical Group | Zhongshan Broad vs. Winner Medical Co | Zhongshan Broad vs. Ningxia Younglight Chemicals |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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