Correlation Between Hengkang Medical and Fuzhou Rockchip
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By analyzing existing cross correlation between Hengkang Medical Group and Fuzhou Rockchip Electronics, you can compare the effects of market volatilities on Hengkang Medical and Fuzhou Rockchip 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 Fuzhou Rockchip. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengkang Medical and Fuzhou Rockchip.
Diversification Opportunities for Hengkang Medical and Fuzhou Rockchip
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hengkang and Fuzhou is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Hengkang Medical Group and Fuzhou Rockchip Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuzhou Rockchip Elec 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 Fuzhou Rockchip. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuzhou Rockchip Elec has no effect on the direction of Hengkang Medical i.e., Hengkang Medical and Fuzhou Rockchip go up and down completely randomly.
Pair Corralation between Hengkang Medical and Fuzhou Rockchip
Assuming the 90 days trading horizon Hengkang Medical Group is expected to generate 0.77 times more return on investment than Fuzhou Rockchip. However, Hengkang Medical Group is 1.3 times less risky than Fuzhou Rockchip. It trades about 0.23 of its potential returns per unit of risk. Fuzhou Rockchip Electronics is currently generating about 0.06 per unit of risk. If you would invest 248.00 in Hengkang Medical Group on November 28, 2024 and sell it today you would earn a total of 32.00 from holding Hengkang Medical Group or generate 12.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hengkang Medical Group vs. Fuzhou Rockchip Electronics
Performance |
| Timeline |
| Hengkang Medical |
| Fuzhou Rockchip Elec |
Hengkang Medical and Fuzhou Rockchip Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengkang Medical and Fuzhou Rockchip
The main advantage of trading using opposite Hengkang Medical and Fuzhou Rockchip positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengkang Medical position performs unexpectedly, Fuzhou Rockchip 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 Fuzhou Rockchip will offset losses from the drop in Fuzhou Rockchip's long position.| Hengkang Medical vs. Shenzhen Noposion Agrochemicals | Hengkang Medical vs. Daoming OpticsChemical Co | Hengkang Medical vs. Peoples Insurance of | Hengkang Medical vs. Guangzhou Jointas Chemical |
| Fuzhou Rockchip vs. Anhui Transport Consulting | Fuzhou Rockchip vs. Xinjiang Beixin RoadBridge | Fuzhou Rockchip vs. Sichuan Fulin Transportation | Fuzhou Rockchip vs. Shaanxi Broadcast TV |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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