Correlation Between Hengkang Medical and Suzhou Douson
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By analyzing existing cross correlation between Hengkang Medical Group and Suzhou Douson Drilling, you can compare the effects of market volatilities on Hengkang Medical and Suzhou Douson 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 Suzhou Douson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengkang Medical and Suzhou Douson.
Diversification Opportunities for Hengkang Medical and Suzhou Douson
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hengkang and Suzhou is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Hengkang Medical Group and Suzhou Douson Drilling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Douson Drilling 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 Suzhou Douson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Douson Drilling has no effect on the direction of Hengkang Medical i.e., Hengkang Medical and Suzhou Douson go up and down completely randomly.
Pair Corralation between Hengkang Medical and Suzhou Douson
Assuming the 90 days trading horizon Hengkang Medical Group is expected to under-perform the Suzhou Douson. In addition to that, Hengkang Medical is 1.19 times more volatile than Suzhou Douson Drilling. It trades about -0.07 of its total potential returns per unit of risk. Suzhou Douson Drilling is currently generating about -0.07 per unit of volatility. If you would invest 2,523 in Suzhou Douson Drilling on October 8, 2024 and sell it today you would lose (168.00) from holding Suzhou Douson Drilling or give up 6.66% 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. Suzhou Douson Drilling
Performance |
Timeline |
Hengkang Medical |
Suzhou Douson Drilling |
Hengkang Medical and Suzhou Douson Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hengkang Medical and Suzhou Douson
The main advantage of trading using opposite Hengkang Medical and Suzhou Douson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengkang Medical position performs unexpectedly, Suzhou Douson 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 Suzhou Douson will offset losses from the drop in Suzhou Douson's long position.Hengkang Medical vs. Nuode Investment Co | Hengkang Medical vs. Zhejiang Construction Investment | Hengkang Medical vs. Inspur Software Co | Hengkang Medical vs. Jiugui Liquor Co |
Suzhou Douson vs. Zijin Mining Group | Suzhou Douson vs. Chengtun Mining Group | Suzhou Douson vs. Dr Peng Telecom | Suzhou Douson vs. Pengxin International Mining |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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