Correlation Between Hengkang Medical and Heilongjiang Publishing
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By analyzing existing cross correlation between Hengkang Medical Group and Heilongjiang Publishing Media, you can compare the effects of market volatilities on Hengkang Medical and Heilongjiang Publishing 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 Heilongjiang Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengkang Medical and Heilongjiang Publishing.
Diversification Opportunities for Hengkang Medical and Heilongjiang Publishing
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hengkang and Heilongjiang is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Hengkang Medical Group and Heilongjiang Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Publishing 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 Heilongjiang Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heilongjiang Publishing has no effect on the direction of Hengkang Medical i.e., Hengkang Medical and Heilongjiang Publishing go up and down completely randomly.
Pair Corralation between Hengkang Medical and Heilongjiang Publishing
Assuming the 90 days trading horizon Hengkang Medical Group is expected to generate 1.63 times more return on investment than Heilongjiang Publishing. However, Hengkang Medical is 1.63 times more volatile than Heilongjiang Publishing Media. It trades about -0.09 of its potential returns per unit of risk. Heilongjiang Publishing Media is currently generating about -0.2 per unit of risk. If you would invest 273.00 in Hengkang Medical Group on October 23, 2024 and sell it today you would lose (26.00) from holding Hengkang Medical Group or give up 9.52% 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. Heilongjiang Publishing Media
Performance |
| Timeline |
| Hengkang Medical |
| Heilongjiang Publishing |
Hengkang Medical and Heilongjiang Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengkang Medical and Heilongjiang Publishing
The main advantage of trading using opposite Hengkang Medical and Heilongjiang Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengkang Medical position performs unexpectedly, Heilongjiang Publishing 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 Heilongjiang Publishing will offset losses from the drop in Heilongjiang Publishing's long position.| Hengkang Medical vs. Eyebright Medical Technology | Hengkang Medical vs. Allgens Medical Technology | Hengkang Medical vs. Western Metal Materials | Hengkang Medical vs. Tongling Nonferrous Metals |
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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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