Correlation Between Hengkang Medical and Jiangsu Pacific
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By analyzing existing cross correlation between Hengkang Medical Group and Jiangsu Pacific Quartz, you can compare the effects of market volatilities on Hengkang Medical and Jiangsu Pacific 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 Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengkang Medical and Jiangsu Pacific.
Diversification Opportunities for Hengkang Medical and Jiangsu Pacific
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hengkang and Jiangsu is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Hengkang Medical Group and Jiangsu Pacific Quartz in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Pacific Quartz 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 Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Pacific Quartz has no effect on the direction of Hengkang Medical i.e., Hengkang Medical and Jiangsu Pacific go up and down completely randomly.
Pair Corralation between Hengkang Medical and Jiangsu Pacific
Assuming the 90 days trading horizon Hengkang Medical Group is expected to generate 0.86 times more return on investment than Jiangsu Pacific. However, Hengkang Medical Group is 1.17 times less risky than Jiangsu Pacific. It trades about -0.03 of its potential returns per unit of risk. Jiangsu Pacific Quartz is currently generating about -0.07 per unit of risk. If you would invest 461.00 in Hengkang Medical Group on October 30, 2024 and sell it today you would lose (213.00) from holding Hengkang Medical Group or give up 46.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hengkang Medical Group vs. Jiangsu Pacific Quartz
Performance |
| Timeline |
| Hengkang Medical |
| Jiangsu Pacific Quartz |
Hengkang Medical and Jiangsu Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengkang Medical and Jiangsu Pacific
The main advantage of trading using opposite Hengkang Medical and Jiangsu Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengkang Medical position performs unexpectedly, Jiangsu Pacific 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 Pacific will offset losses from the drop in Jiangsu Pacific's long position.| Hengkang Medical vs. Railway Signal Communication | Hengkang Medical vs. Hongrun Construction Group | Hengkang Medical vs. Guangzhou Haige Communications | Hengkang Medical vs. Wintao Communications Co |
| Jiangsu Pacific vs. Guangdong Jinma Entertainment | Jiangsu Pacific vs. Zhejiang Qianjiang Motorcycle | Jiangsu Pacific vs. Spring Airlines Co | Jiangsu Pacific vs. Iat Automobile Technology |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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