Correlation Between Hengkang Medical and Jiangsu Yueda
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By analyzing existing cross correlation between Hengkang Medical Group and Jiangsu Yueda Investment, you can compare the effects of market volatilities on Hengkang Medical and Jiangsu Yueda 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 Yueda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengkang Medical and Jiangsu Yueda.
Diversification Opportunities for Hengkang Medical and Jiangsu Yueda
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hengkang and Jiangsu is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Hengkang Medical Group and Jiangsu Yueda Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yueda Investment 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 Yueda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yueda Investment has no effect on the direction of Hengkang Medical i.e., Hengkang Medical and Jiangsu Yueda go up and down completely randomly.
Pair Corralation between Hengkang Medical and Jiangsu Yueda
Assuming the 90 days trading horizon Hengkang Medical is expected to generate 7.69 times less return on investment than Jiangsu Yueda. In addition to that, Hengkang Medical is 1.68 times more volatile than Jiangsu Yueda Investment. It trades about 0.0 of its total potential returns per unit of risk. Jiangsu Yueda Investment is currently generating about 0.03 per unit of volatility. If you would invest 412.00 in Jiangsu Yueda Investment on October 14, 2024 and sell it today you would earn a total of 9.00 from holding Jiangsu Yueda Investment or generate 2.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hengkang Medical Group vs. Jiangsu Yueda Investment
Performance |
| Timeline |
| Hengkang Medical |
| Jiangsu Yueda Investment |
Hengkang Medical and Jiangsu Yueda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengkang Medical and Jiangsu Yueda
The main advantage of trading using opposite Hengkang Medical and Jiangsu Yueda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengkang Medical position performs unexpectedly, Jiangsu Yueda 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 Yueda will offset losses from the drop in Jiangsu Yueda's long position.| Hengkang Medical vs. Guangzhou Restaurants Group | Hengkang Medical vs. CITIC Guoan Information | Hengkang Medical vs. East Money Information | Hengkang Medical vs. Zhongfu Information |
| Jiangsu Yueda vs. Zhonghong Pulin Medical | Jiangsu Yueda vs. Medprin Regenerative Medical | Jiangsu Yueda vs. Quectel Wireless Solutions | Jiangsu Yueda vs. Hengkang Medical Group |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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