Correlation Between Hengkang Medical and Shengtak New
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By analyzing existing cross correlation between Hengkang Medical Group and Shengtak New Material, you can compare the effects of market volatilities on Hengkang Medical and Shengtak New 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 Shengtak New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengkang Medical and Shengtak New.
Diversification Opportunities for Hengkang Medical and Shengtak New
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hengkang and Shengtak is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Hengkang Medical Group and Shengtak New Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengtak New Material 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 Shengtak New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shengtak New Material has no effect on the direction of Hengkang Medical i.e., Hengkang Medical and Shengtak New go up and down completely randomly.
Pair Corralation between Hengkang Medical and Shengtak New
Assuming the 90 days trading horizon Hengkang Medical Group is expected to under-perform the Shengtak New. But the stock apears to be less risky and, when comparing its historical volatility, Hengkang Medical Group is 1.19 times less risky than Shengtak New. The stock trades about -0.02 of its potential returns per unit of risk. The Shengtak New Material is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 3,383 in Shengtak New Material on October 11, 2024 and sell it today you would lose (274.00) from holding Shengtak New Material or give up 8.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hengkang Medical Group vs. Shengtak New Material
Performance |
| Timeline |
| Hengkang Medical |
| Shengtak New Material |
Hengkang Medical and Shengtak New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengkang Medical and Shengtak New
The main advantage of trading using opposite Hengkang Medical and Shengtak New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengkang Medical position performs unexpectedly, Shengtak New 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 Shengtak New will offset losses from the drop in Shengtak New's long position.| Hengkang Medical vs. Yuanjie Semiconductor Technology | Hengkang Medical vs. Shanghai V Test Semiconductor | Hengkang Medical vs. Huatian Hotel Group | Hengkang Medical vs. Zoy Home Furnishing |
| Shengtak New vs. Shenzhen Clou Electronics | Shengtak New vs. Semiconductor Manufacturing Electronics | Shengtak New vs. Success Electronics | Shengtak New vs. Inspur Software 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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