Correlation Between Hengkang Medical and Chison Medical
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By analyzing existing cross correlation between Hengkang Medical Group and Chison Medical Technologies, you can compare the effects of market volatilities on Hengkang Medical and Chison Medical 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 Chison Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengkang Medical and Chison Medical.
Diversification Opportunities for Hengkang Medical and Chison Medical
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hengkang and Chison is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Hengkang Medical Group and Chison Medical Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chison Medical Techn 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 Chison Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chison Medical Techn has no effect on the direction of Hengkang Medical i.e., Hengkang Medical and Chison Medical go up and down completely randomly.
Pair Corralation between Hengkang Medical and Chison Medical
Assuming the 90 days trading horizon Hengkang Medical is expected to generate 1.19 times less return on investment than Chison Medical. In addition to that, Hengkang Medical is 1.27 times more volatile than Chison Medical Technologies. It trades about 0.12 of its total potential returns per unit of risk. Chison Medical Technologies is currently generating about 0.18 per unit of volatility. If you would invest 2,350 in Chison Medical Technologies on September 2, 2024 and sell it today you would earn a total of 301.00 from holding Chison Medical Technologies or generate 12.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hengkang Medical Group vs. Chison Medical Technologies
Performance |
| Timeline |
| Hengkang Medical |
| Chison Medical Techn |
Hengkang Medical and Chison Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengkang Medical and Chison Medical
The main advantage of trading using opposite Hengkang Medical and Chison Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengkang Medical position performs unexpectedly, Chison Medical 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 Chison Medical will offset losses from the drop in Chison Medical's long position.| Hengkang Medical vs. Sichuan Teway Food | Hengkang Medical vs. Dhc Software Co | Hengkang Medical vs. Guilin Seamild Foods | Hengkang Medical vs. V V Food |
| Chison Medical vs. Nanjing Putian Telecommunications | Chison Medical vs. Shenzhen Hifuture Electric | Chison Medical vs. Tianjin Realty Development | Chison Medical vs. Shenyang Huitian Thermal |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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