Correlation Between Hengkang Medical and Touchstone International
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hengkang Medical Group and Touchstone International Medical, you can compare the effects of market volatilities on Hengkang Medical and Touchstone International 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 Touchstone International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengkang Medical and Touchstone International.
Diversification Opportunities for Hengkang Medical and Touchstone International
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hengkang and Touchstone is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Hengkang Medical Group and Touchstone International Medic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone International 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 Touchstone International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone International has no effect on the direction of Hengkang Medical i.e., Hengkang Medical and Touchstone International go up and down completely randomly.
Pair Corralation between Hengkang Medical and Touchstone International
Assuming the 90 days trading horizon Hengkang Medical Group is expected to generate 1.92 times more return on investment than Touchstone International. However, Hengkang Medical is 1.92 times more volatile than Touchstone International Medical. It trades about 0.12 of its potential returns per unit of risk. Touchstone International Medical is currently generating about 0.15 per unit of risk. If you would invest 251.00 in Hengkang Medical Group on August 24, 2024 and sell it today you would earn a total of 25.00 from holding Hengkang Medical Group or generate 9.96% 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. Touchstone International Medic
Performance |
| Timeline |
| Hengkang Medical |
| Touchstone International |
Hengkang Medical and Touchstone International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengkang Medical and Touchstone International
The main advantage of trading using opposite Hengkang Medical and Touchstone International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengkang Medical position performs unexpectedly, Touchstone International 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 Touchstone International will offset losses from the drop in Touchstone International's long position.| Hengkang Medical vs. China State Construction | Hengkang Medical vs. Poly Real Estate | Hengkang Medical vs. China Vanke Co | Hengkang Medical vs. China Merchants Shekou |
| Touchstone International vs. China State Construction | Touchstone International vs. Poly Real Estate | Touchstone International vs. China Vanke Co | Touchstone International vs. China Merchants Shekou |
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..
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |