Correlation Between Hengkang Medical and Xiangyu Medical
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By analyzing existing cross correlation between Hengkang Medical Group and Xiangyu Medical Co, you can compare the effects of market volatilities on Hengkang Medical and Xiangyu 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 Xiangyu Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengkang Medical and Xiangyu Medical.
Diversification Opportunities for Hengkang Medical and Xiangyu Medical
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hengkang and Xiangyu is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Hengkang Medical Group and Xiangyu Medical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangyu 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 Xiangyu Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiangyu Medical has no effect on the direction of Hengkang Medical i.e., Hengkang Medical and Xiangyu Medical go up and down completely randomly.
Pair Corralation between Hengkang Medical and Xiangyu Medical
Assuming the 90 days trading horizon Hengkang Medical Group is expected to under-perform the Xiangyu Medical. But the stock apears to be less risky and, when comparing its historical volatility, Hengkang Medical Group is 1.09 times less risky than Xiangyu Medical. The stock trades about -0.03 of its potential returns per unit of risk. The Xiangyu Medical Co is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 3,186 in Xiangyu Medical Co on September 2, 2024 and sell it today you would lose (14.00) from holding Xiangyu Medical Co or give up 0.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hengkang Medical Group vs. Xiangyu Medical Co
Performance |
| Timeline |
| Hengkang Medical |
| Xiangyu Medical |
Hengkang Medical and Xiangyu Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengkang Medical and Xiangyu Medical
The main advantage of trading using opposite Hengkang Medical and Xiangyu Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengkang Medical position performs unexpectedly, Xiangyu 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 Xiangyu Medical will offset losses from the drop in Xiangyu 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 |
| Xiangyu Medical vs. Nanjing Putian Telecommunications | Xiangyu Medical vs. Shenzhen Hifuture Electric | Xiangyu Medical vs. Tianjin Realty Development | Xiangyu 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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