Correlation Between Hengkang Medical and Everdisplay Optronics
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By analyzing existing cross correlation between Hengkang Medical Group and Everdisplay Optronics Shanghai, you can compare the effects of market volatilities on Hengkang Medical and Everdisplay Optronics 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 Everdisplay Optronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengkang Medical and Everdisplay Optronics.
Diversification Opportunities for Hengkang Medical and Everdisplay Optronics
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hengkang and Everdisplay is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Hengkang Medical Group and Everdisplay Optronics Shanghai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Everdisplay Optronics 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 Everdisplay Optronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Everdisplay Optronics has no effect on the direction of Hengkang Medical i.e., Hengkang Medical and Everdisplay Optronics go up and down completely randomly.
Pair Corralation between Hengkang Medical and Everdisplay Optronics
Assuming the 90 days trading horizon Hengkang Medical Group is expected to generate 1.99 times more return on investment than Everdisplay Optronics. However, Hengkang Medical is 1.99 times more volatile than Everdisplay Optronics Shanghai. It trades about 0.18 of its potential returns per unit of risk. Everdisplay Optronics Shanghai is currently generating about -0.01 per unit of risk. If you would invest 256.00 in Hengkang Medical Group on September 5, 2024 and sell it today you would earn a total of 44.00 from holding Hengkang Medical Group or generate 17.19% 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. Everdisplay Optronics Shanghai
Performance |
| Timeline |
| Hengkang Medical |
| Everdisplay Optronics |
Hengkang Medical and Everdisplay Optronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengkang Medical and Everdisplay Optronics
The main advantage of trading using opposite Hengkang Medical and Everdisplay Optronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengkang Medical position performs unexpectedly, Everdisplay Optronics 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 Everdisplay Optronics will offset losses from the drop in Everdisplay Optronics' long position.| Hengkang Medical vs. Industrial and Commercial | Hengkang Medical vs. Agricultural Bank of | Hengkang Medical vs. China Construction Bank | Hengkang Medical vs. Bank of China |
| Everdisplay Optronics vs. PetroChina Co Ltd | Everdisplay Optronics vs. China Mobile Limited | Everdisplay Optronics vs. CNOOC Limited | Everdisplay Optronics vs. Ping An Insurance |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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