Correlation Between Hengkang Medical and Jafron Biomedical
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By analyzing existing cross correlation between Hengkang Medical Group and Jafron Biomedical Co, you can compare the effects of market volatilities on Hengkang Medical and Jafron Biomedical 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 Jafron Biomedical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengkang Medical and Jafron Biomedical.
Diversification Opportunities for Hengkang Medical and Jafron Biomedical
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hengkang and Jafron is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Hengkang Medical Group and Jafron Biomedical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jafron Biomedical 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 Jafron Biomedical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jafron Biomedical has no effect on the direction of Hengkang Medical i.e., Hengkang Medical and Jafron Biomedical go up and down completely randomly.
Pair Corralation between Hengkang Medical and Jafron Biomedical
Assuming the 90 days trading horizon Hengkang Medical Group is expected to generate 1.8 times more return on investment than Jafron Biomedical. However, Hengkang Medical is 1.8 times more volatile than Jafron Biomedical Co. It trades about 0.07 of its potential returns per unit of risk. Jafron Biomedical Co is currently generating about -0.03 per unit of risk. If you would invest 257.00 in Hengkang Medical Group on September 1, 2024 and sell it today you would earn a total of 13.00 from holding Hengkang Medical Group or generate 5.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hengkang Medical Group vs. Jafron Biomedical Co
Performance |
| Timeline |
| Hengkang Medical |
| Jafron Biomedical |
Hengkang Medical and Jafron Biomedical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengkang Medical and Jafron Biomedical
The main advantage of trading using opposite Hengkang Medical and Jafron Biomedical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengkang Medical position performs unexpectedly, Jafron Biomedical 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 Jafron Biomedical will offset losses from the drop in Jafron Biomedical's long position.| Hengkang Medical vs. Xinjiang Baodi Mining | Hengkang Medical vs. Zhejiang Qianjiang Motorcycle | Hengkang Medical vs. Hainan Mining Co | Hengkang Medical vs. Guocheng Mining Co |
| Jafron Biomedical vs. Nanjing Putian Telecommunications | Jafron Biomedical vs. Shenzhen Hifuture Electric | Jafron Biomedical vs. Tianjin Realty Development | Jafron Biomedical vs. Shenyang Huitian Thermal |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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