Correlation Between Hengkang Medical and Jiangsu Jinling
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By analyzing existing cross correlation between Hengkang Medical Group and Jiangsu Jinling Sports, you can compare the effects of market volatilities on Hengkang Medical and Jiangsu Jinling 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 Jiangsu Jinling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengkang Medical and Jiangsu Jinling.
Diversification Opportunities for Hengkang Medical and Jiangsu Jinling
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hengkang and Jiangsu is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Hengkang Medical Group and Jiangsu Jinling Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Jinling Sports 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 Jiangsu Jinling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Jinling Sports has no effect on the direction of Hengkang Medical i.e., Hengkang Medical and Jiangsu Jinling go up and down completely randomly.
Pair Corralation between Hengkang Medical and Jiangsu Jinling
Assuming the 90 days trading horizon Hengkang Medical Group is expected to generate 1.93 times more return on investment than Jiangsu Jinling. However, Hengkang Medical is 1.93 times more volatile than Jiangsu Jinling Sports. It trades about 0.18 of its potential returns per unit of risk. Jiangsu Jinling Sports is currently generating about 0.29 per unit of risk. If you would invest 256.00 in Hengkang Medical Group on September 5, 2024 and sell it today you would earn a total of 44.00 from holding Hengkang Medical Group or generate 17.19% 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. Jiangsu Jinling Sports
Performance |
| Timeline |
| Hengkang Medical |
| Jiangsu Jinling Sports |
Hengkang Medical and Jiangsu Jinling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengkang Medical and Jiangsu Jinling
The main advantage of trading using opposite Hengkang Medical and Jiangsu Jinling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengkang Medical position performs unexpectedly, Jiangsu Jinling 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 Jiangsu Jinling will offset losses from the drop in Jiangsu Jinling's long position.| Hengkang Medical vs. Industrial and Commercial | Hengkang Medical vs. Agricultural Bank of | Hengkang Medical vs. China Construction Bank | Hengkang Medical vs. Bank of China |
| Jiangsu Jinling vs. Spring Airlines Co | Jiangsu Jinling vs. Tianjin Capital Environmental | Jiangsu Jinling vs. Ningbo Ligong Online | Jiangsu Jinling vs. Elite Color Environmental |
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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