Correlation Between Andon Health and Everjoy Health
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By analyzing existing cross correlation between Andon Health Co and Everjoy Health Group, you can compare the effects of market volatilities on Andon Health and Everjoy Health 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 Andon Health with a short position of Everjoy Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Andon Health and Everjoy Health.
Diversification Opportunities for Andon Health and Everjoy Health
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Andon and Everjoy is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Andon Health Co and Everjoy Health Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Everjoy Health Group and Andon Health 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 Andon Health Co are associated (or correlated) with Everjoy Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Everjoy Health Group has no effect on the direction of Andon Health i.e., Andon Health and Everjoy Health go up and down completely randomly.
Pair Corralation between Andon Health and Everjoy Health
Assuming the 90 days trading horizon Andon Health is expected to generate 4.47 times less return on investment than Everjoy Health. But when comparing it to its historical volatility, Andon Health Co is 1.34 times less risky than Everjoy Health. It trades about 0.05 of its potential returns per unit of risk. Everjoy Health Group is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 274.00 in Everjoy Health Group on September 2, 2024 and sell it today you would earn a total of 95.00 from holding Everjoy Health Group or generate 34.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Andon Health Co vs. Everjoy Health Group
Performance |
| Timeline |
| Andon Health |
| Everjoy Health Group |
Andon Health and Everjoy Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Andon Health and Everjoy Health
The main advantage of trading using opposite Andon Health and Everjoy Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Andon Health position performs unexpectedly, Everjoy Health 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 Everjoy Health will offset losses from the drop in Everjoy Health's long position.| Andon Health vs. Guizhou Chanhen Chemical | Andon Health vs. Qinghaihuading Industrial Co | Andon Health vs. Shenyang Chemical Industry | Andon Health vs. Do Fluoride Chemicals Co |
| Everjoy Health vs. Industrial and Commercial | Everjoy Health vs. Agricultural Bank of | Everjoy Health vs. China Construction Bank | Everjoy Health 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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