Correlation Between Hengkang Medical and Guangzhou Tinci
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By analyzing existing cross correlation between Hengkang Medical Group and Guangzhou Tinci Materials, you can compare the effects of market volatilities on Hengkang Medical and Guangzhou Tinci 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 Guangzhou Tinci. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengkang Medical and Guangzhou Tinci.
Diversification Opportunities for Hengkang Medical and Guangzhou Tinci
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hengkang and Guangzhou is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Hengkang Medical Group and Guangzhou Tinci Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Tinci Materials 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 Guangzhou Tinci. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Tinci Materials has no effect on the direction of Hengkang Medical i.e., Hengkang Medical and Guangzhou Tinci go up and down completely randomly.
Pair Corralation between Hengkang Medical and Guangzhou Tinci
Assuming the 90 days trading horizon Hengkang Medical Group is expected to generate 0.97 times more return on investment than Guangzhou Tinci. However, Hengkang Medical Group is 1.03 times less risky than Guangzhou Tinci. It trades about -0.03 of its potential returns per unit of risk. Guangzhou Tinci Materials is currently generating about -0.05 per unit of risk. If you would invest 445.00 in Hengkang Medical Group on November 2, 2024 and sell it today you would lose (197.00) from holding Hengkang Medical Group or give up 44.27% 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. Guangzhou Tinci Materials
Performance |
| Timeline |
| Hengkang Medical |
| Guangzhou Tinci Materials |
Hengkang Medical and Guangzhou Tinci Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengkang Medical and Guangzhou Tinci
The main advantage of trading using opposite Hengkang Medical and Guangzhou Tinci positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengkang Medical position performs unexpectedly, Guangzhou Tinci 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 Guangzhou Tinci will offset losses from the drop in Guangzhou Tinci's long position.| Hengkang Medical vs. Chengtun Mining Group | Hengkang Medical vs. Shanghai CEO Environmental | Hengkang Medical vs. Shenyang Blue Silver | Hengkang Medical vs. Chengdu Spaceon Electronics |
| Guangzhou Tinci vs. Zijin Mining Group | Guangzhou Tinci vs. Wanhua Chemical Group | Guangzhou Tinci vs. Baoshan Iron Steel | Guangzhou Tinci vs. Shandong Gold Mining |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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