Correlation Between Hengkang Medical and Ningbo Ligong
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By analyzing existing cross correlation between Hengkang Medical Group and Ningbo Ligong Online, you can compare the effects of market volatilities on Hengkang Medical and Ningbo Ligong 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 Ningbo Ligong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengkang Medical and Ningbo Ligong.
Diversification Opportunities for Hengkang Medical and Ningbo Ligong
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hengkang and Ningbo is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Hengkang Medical Group and Ningbo Ligong Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Ligong Online 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 Ningbo Ligong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Ligong Online has no effect on the direction of Hengkang Medical i.e., Hengkang Medical and Ningbo Ligong go up and down completely randomly.
Pair Corralation between Hengkang Medical and Ningbo Ligong
Assuming the 90 days trading horizon Hengkang Medical is expected to generate 4.17 times less return on investment than Ningbo Ligong. In addition to that, Hengkang Medical is 1.18 times more volatile than Ningbo Ligong Online. It trades about 0.01 of its total potential returns per unit of risk. Ningbo Ligong Online is currently generating about 0.03 per unit of volatility. If you would invest 1,168 in Ningbo Ligong Online on September 4, 2024 and sell it today you would earn a total of 172.00 from holding Ningbo Ligong Online or generate 14.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hengkang Medical Group vs. Ningbo Ligong Online
Performance |
| Timeline |
| Hengkang Medical |
| Ningbo Ligong Online |
Hengkang Medical and Ningbo Ligong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengkang Medical and Ningbo Ligong
The main advantage of trading using opposite Hengkang Medical and Ningbo Ligong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengkang Medical position performs unexpectedly, Ningbo Ligong 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 Ningbo Ligong will offset losses from the drop in Ningbo Ligong's long position.| Hengkang Medical vs. Industrial and Commercial | Hengkang Medical vs. Agricultural Bank of | Hengkang Medical vs. China Construction Bank | Hengkang Medical vs. Bank of China |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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