Correlation Between Hengkang Medical and Shanghai Sanyou
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By analyzing existing cross correlation between Hengkang Medical Group and Shanghai Sanyou Medical, you can compare the effects of market volatilities on Hengkang Medical and Shanghai Sanyou 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 Shanghai Sanyou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengkang Medical and Shanghai Sanyou.
Diversification Opportunities for Hengkang Medical and Shanghai Sanyou
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hengkang and Shanghai is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Hengkang Medical Group and Shanghai Sanyou Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Sanyou Medical 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 Shanghai Sanyou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Sanyou Medical has no effect on the direction of Hengkang Medical i.e., Hengkang Medical and Shanghai Sanyou go up and down completely randomly.
Pair Corralation between Hengkang Medical and Shanghai Sanyou
Assuming the 90 days trading horizon Hengkang Medical Group is expected to generate 1.13 times more return on investment than Shanghai Sanyou. However, Hengkang Medical is 1.13 times more volatile than Shanghai Sanyou Medical. It trades about 0.11 of its potential returns per unit of risk. Shanghai Sanyou Medical is currently generating about 0.03 per unit of risk. If you would invest 174.00 in Hengkang Medical Group on November 2, 2024 and sell it today you would earn a total of 74.00 from holding Hengkang Medical Group or generate 42.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hengkang Medical Group vs. Shanghai Sanyou Medical
Performance |
| Timeline |
| Hengkang Medical |
| Shanghai Sanyou Medical |
Hengkang Medical and Shanghai Sanyou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengkang Medical and Shanghai Sanyou
The main advantage of trading using opposite Hengkang Medical and Shanghai Sanyou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengkang Medical position performs unexpectedly, Shanghai Sanyou 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 Shanghai Sanyou will offset losses from the drop in Shanghai Sanyou's long position.| Hengkang Medical vs. Duzhe Publishing Media | Hengkang Medical vs. Xinhua Winshare Publishing | Hengkang Medical vs. Tangel Publishing | Hengkang Medical vs. Zhejiang Kingland Pipeline |
| Shanghai Sanyou vs. YiDong Electronics Technology | Shanghai Sanyou vs. Anhui Tongguan Copper | Shanghai Sanyou vs. Suzhou Douson Drilling | Shanghai Sanyou vs. Zhejiang Yongjin Metal |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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