Correlation Between Hengkang Medical and Beijing E
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By analyzing existing cross correlation between Hengkang Medical Group and Beijing E Hualu, you can compare the effects of market volatilities on Hengkang Medical and Beijing E 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 Beijing E. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengkang Medical and Beijing E.
Diversification Opportunities for Hengkang Medical and Beijing E
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hengkang and Beijing is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Hengkang Medical Group and Beijing E Hualu in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing E Hualu 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 Beijing E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing E Hualu has no effect on the direction of Hengkang Medical i.e., Hengkang Medical and Beijing E go up and down completely randomly.
Pair Corralation between Hengkang Medical and Beijing E
Assuming the 90 days trading horizon Hengkang Medical is expected to generate 2.04 times less return on investment than Beijing E. But when comparing it to its historical volatility, Hengkang Medical Group is 1.31 times less risky than Beijing E. It trades about 0.01 of its potential returns per unit of risk. Beijing E Hualu is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,818 in Beijing E Hualu on September 3, 2024 and sell it today you would lose (122.00) from holding Beijing E Hualu or give up 4.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hengkang Medical Group vs. Beijing E Hualu
Performance |
| Timeline |
| Hengkang Medical |
| Beijing E Hualu |
Hengkang Medical and Beijing E Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengkang Medical and Beijing E
The main advantage of trading using opposite Hengkang Medical and Beijing E positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengkang Medical position performs unexpectedly, Beijing E 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 Beijing E will offset losses from the drop in Beijing E's long position.| Hengkang Medical vs. Lander Sports Development | Hengkang Medical vs. Threes Company Media | Hengkang Medical vs. Shuhua Sports Co | Hengkang Medical vs. Shanghai Xinhua Media |
| Beijing E vs. Shuhua Sports Co | Beijing E vs. Jiangsu Yueda Investment | Beijing E vs. Sportsoul Co Ltd | Beijing E vs. Tieling Newcity Investment |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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