Correlation Between Hengkang Medical and Ping An
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By analyzing existing cross correlation between Hengkang Medical Group and Ping An Insurance, you can compare the effects of market volatilities on Hengkang Medical and Ping An 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 Ping An. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengkang Medical and Ping An.
Diversification Opportunities for Hengkang Medical and Ping An
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hengkang and Ping is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Hengkang Medical Group and Ping An Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ping An Insurance 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 Ping An. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ping An Insurance has no effect on the direction of Hengkang Medical i.e., Hengkang Medical and Ping An go up and down completely randomly.
Pair Corralation between Hengkang Medical and Ping An
Assuming the 90 days trading horizon Hengkang Medical Group is expected to generate 2.16 times more return on investment than Ping An. However, Hengkang Medical is 2.16 times more volatile than Ping An Insurance. It trades about 0.18 of its potential returns per unit of risk. Ping An Insurance is currently generating about -0.09 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. Ping An Insurance
Performance |
| Timeline |
| Hengkang Medical |
| Ping An Insurance |
Hengkang Medical and Ping An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengkang Medical and Ping An
The main advantage of trading using opposite Hengkang Medical and Ping An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengkang Medical position performs unexpectedly, Ping An 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 Ping An will offset losses from the drop in Ping An'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 |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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