Correlation Between Hengkang Medical and Beijing Baolande
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By analyzing existing cross correlation between Hengkang Medical Group and Beijing Baolande Software, you can compare the effects of market volatilities on Hengkang Medical and Beijing Baolande 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 Beijing Baolande. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengkang Medical and Beijing Baolande.
Diversification Opportunities for Hengkang Medical and Beijing Baolande
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hengkang and Beijing is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Hengkang Medical Group and Beijing Baolande Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Baolande Software 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 Beijing Baolande. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Baolande Software has no effect on the direction of Hengkang Medical i.e., Hengkang Medical and Beijing Baolande go up and down completely randomly.
Pair Corralation between Hengkang Medical and Beijing Baolande
Assuming the 90 days trading horizon Hengkang Medical is expected to generate 1.53 times less return on investment than Beijing Baolande. But when comparing it to its historical volatility, Hengkang Medical Group is 1.31 times less risky than Beijing Baolande. It trades about 0.12 of its potential returns per unit of risk. Beijing Baolande Software is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,612 in Beijing Baolande Software on October 18, 2024 and sell it today you would earn a total of 1,058 from holding Beijing Baolande Software or generate 65.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hengkang Medical Group vs. Beijing Baolande Software
Performance |
| Timeline |
| Hengkang Medical |
| Beijing Baolande Software |
Hengkang Medical and Beijing Baolande Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengkang Medical and Beijing Baolande
The main advantage of trading using opposite Hengkang Medical and Beijing Baolande positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengkang Medical position performs unexpectedly, Beijing Baolande 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 Beijing Baolande will offset losses from the drop in Beijing Baolande's long position.| Hengkang Medical vs. Allwin Telecommunication Co | Hengkang Medical vs. Ningbo Fangzheng Automobile | Hengkang Medical vs. Guangzhou Automobile Group | Hengkang Medical vs. Chongqing Changan Automobile |
| Beijing Baolande vs. CareRay Digital Medical | Beijing Baolande vs. Tinavi Medical Technologies | Beijing Baolande vs. Shuhua Sports Co | Beijing Baolande vs. Hengkang Medical Group |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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