Correlation Between Hengkang Medical and Impulse Qingdao
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By analyzing existing cross correlation between Hengkang Medical Group and Impulse Qingdao Health, you can compare the effects of market volatilities on Hengkang Medical and Impulse Qingdao 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 Impulse Qingdao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengkang Medical and Impulse Qingdao.
Diversification Opportunities for Hengkang Medical and Impulse Qingdao
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hengkang and Impulse is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Hengkang Medical Group and Impulse Qingdao Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impulse Qingdao Health 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 Impulse Qingdao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impulse Qingdao Health has no effect on the direction of Hengkang Medical i.e., Hengkang Medical and Impulse Qingdao go up and down completely randomly.
Pair Corralation between Hengkang Medical and Impulse Qingdao
Assuming the 90 days trading horizon Hengkang Medical is expected to generate 7.75 times less return on investment than Impulse Qingdao. But when comparing it to its historical volatility, Hengkang Medical Group is 1.07 times less risky than Impulse Qingdao. It trades about 0.02 of its potential returns per unit of risk. Impulse Qingdao Health is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 885.00 in Impulse Qingdao Health on November 3, 2024 and sell it today you would earn a total of 1,466 from holding Impulse Qingdao Health or generate 165.65% 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. Impulse Qingdao Health
Performance |
| Timeline |
| Hengkang Medical |
| Impulse Qingdao Health |
Hengkang Medical and Impulse Qingdao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengkang Medical and Impulse Qingdao
The main advantage of trading using opposite Hengkang Medical and Impulse Qingdao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengkang Medical position performs unexpectedly, Impulse Qingdao 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 Impulse Qingdao will offset losses from the drop in Impulse Qingdao's long position.| Hengkang Medical vs. East Money Information | Hengkang Medical vs. Tibet Huayu Mining | Hengkang Medical vs. Guangzhou Ruoyuchen Information | Hengkang Medical vs. Wonders Information |
| Impulse Qingdao vs. Shandong Sinoglory Health | Impulse Qingdao vs. Zhongrun Resources Investment | Impulse Qingdao vs. Lotus Health Group | Impulse Qingdao vs. China Asset Management |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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