Correlation Between Hengkang Medical and Qingdao NovelBeam
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hengkang Medical Group and Qingdao NovelBeam Technology, you can compare the effects of market volatilities on Hengkang Medical and Qingdao NovelBeam 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 Qingdao NovelBeam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengkang Medical and Qingdao NovelBeam.
Diversification Opportunities for Hengkang Medical and Qingdao NovelBeam
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hengkang and Qingdao is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Hengkang Medical Group and Qingdao NovelBeam Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao NovelBeam 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 Qingdao NovelBeam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao NovelBeam has no effect on the direction of Hengkang Medical i.e., Hengkang Medical and Qingdao NovelBeam go up and down completely randomly.
Pair Corralation between Hengkang Medical and Qingdao NovelBeam
Assuming the 90 days trading horizon Hengkang Medical Group is expected to generate 1.05 times more return on investment than Qingdao NovelBeam. However, Hengkang Medical is 1.05 times more volatile than Qingdao NovelBeam Technology. It trades about 0.19 of its potential returns per unit of risk. Qingdao NovelBeam Technology is currently generating about 0.13 per unit of risk. If you would invest 174.00 in Hengkang Medical Group on August 29, 2024 and sell it today you would earn a total of 88.00 from holding Hengkang Medical Group or generate 50.57% 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. Qingdao NovelBeam Technology
Performance |
| Timeline |
| Hengkang Medical |
| Qingdao NovelBeam |
Hengkang Medical and Qingdao NovelBeam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengkang Medical and Qingdao NovelBeam
The main advantage of trading using opposite Hengkang Medical and Qingdao NovelBeam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengkang Medical position performs unexpectedly, Qingdao NovelBeam 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 Qingdao NovelBeam will offset losses from the drop in Qingdao NovelBeam's long position.| Hengkang Medical vs. Industrial and Commercial | Hengkang Medical vs. China Construction Bank | Hengkang Medical vs. Agricultural Bank of | Hengkang Medical vs. Bank of China |
| Qingdao NovelBeam vs. Industrial and Commercial | Qingdao NovelBeam vs. China Construction Bank | Qingdao NovelBeam vs. Agricultural Bank of | Qingdao NovelBeam vs. Bank of China |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |