Correlation Between Hengkang Medical and Xiamen Jihong
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By analyzing existing cross correlation between Hengkang Medical Group and Xiamen Jihong Package, you can compare the effects of market volatilities on Hengkang Medical and Xiamen Jihong 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 Xiamen Jihong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengkang Medical and Xiamen Jihong.
Diversification Opportunities for Hengkang Medical and Xiamen Jihong
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hengkang and Xiamen is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Hengkang Medical Group and Xiamen Jihong Package in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Jihong Package 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 Xiamen Jihong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Jihong Package has no effect on the direction of Hengkang Medical i.e., Hengkang Medical and Xiamen Jihong go up and down completely randomly.
Pair Corralation between Hengkang Medical and Xiamen Jihong
Assuming the 90 days trading horizon Hengkang Medical is expected to generate 2.26 times less return on investment than Xiamen Jihong. In addition to that, Hengkang Medical is 1.14 times more volatile than Xiamen Jihong Package. It trades about 0.12 of its total potential returns per unit of risk. Xiamen Jihong Package is currently generating about 0.31 per unit of volatility. If you would invest 1,290 in Xiamen Jihong Package on September 2, 2024 and sell it today you would earn a total of 344.00 from holding Xiamen Jihong Package or generate 26.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hengkang Medical Group vs. Xiamen Jihong Package
Performance |
| Timeline |
| Hengkang Medical |
| Xiamen Jihong Package |
Hengkang Medical and Xiamen Jihong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengkang Medical and Xiamen Jihong
The main advantage of trading using opposite Hengkang Medical and Xiamen Jihong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengkang Medical position performs unexpectedly, Xiamen Jihong 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 Xiamen Jihong will offset losses from the drop in Xiamen Jihong's long position.| Hengkang Medical vs. Sichuan Teway Food | Hengkang Medical vs. Dhc Software Co | Hengkang Medical vs. Guilin Seamild Foods | Hengkang Medical vs. V V Food |
| Xiamen Jihong vs. Anhui Gujing Distillery | Xiamen Jihong vs. Jiugui Liquor Co | Xiamen Jihong vs. Beijing Yanjing Brewery | Xiamen Jihong vs. Hengdian Entertainment Co |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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