Correlation Between Suofeiya Home and Meinian Onehealth
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By analyzing existing cross correlation between Suofeiya Home Collection and Meinian Onehealth Healthcare, you can compare the effects of market volatilities on Suofeiya Home and Meinian Onehealth 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 Suofeiya Home with a short position of Meinian Onehealth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suofeiya Home and Meinian Onehealth.
Diversification Opportunities for Suofeiya Home and Meinian Onehealth
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Suofeiya and Meinian is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Suofeiya Home Collection and Meinian Onehealth Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meinian Onehealth and Suofeiya Home 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 Suofeiya Home Collection are associated (or correlated) with Meinian Onehealth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meinian Onehealth has no effect on the direction of Suofeiya Home i.e., Suofeiya Home and Meinian Onehealth go up and down completely randomly.
Pair Corralation between Suofeiya Home and Meinian Onehealth
Assuming the 90 days trading horizon Suofeiya Home is expected to generate 2.11 times less return on investment than Meinian Onehealth. In addition to that, Suofeiya Home is 1.16 times more volatile than Meinian Onehealth Healthcare. It trades about 0.06 of its total potential returns per unit of risk. Meinian Onehealth Healthcare is currently generating about 0.15 per unit of volatility. If you would invest 489.00 in Meinian Onehealth Healthcare on September 15, 2024 and sell it today you would earn a total of 38.00 from holding Meinian Onehealth Healthcare or generate 7.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suofeiya Home Collection vs. Meinian Onehealth Healthcare
Performance |
| Timeline |
| Suofeiya Home Collection |
| Meinian Onehealth |
Suofeiya Home and Meinian Onehealth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suofeiya Home and Meinian Onehealth
The main advantage of trading using opposite Suofeiya Home and Meinian Onehealth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suofeiya Home position performs unexpectedly, Meinian Onehealth 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 Meinian Onehealth will offset losses from the drop in Meinian Onehealth's long position.| Suofeiya Home vs. Lutian Machinery Co | Suofeiya Home vs. China Longyuan Power | Suofeiya Home vs. PetroChina Co Ltd | Suofeiya Home vs. Bank of China |
| Meinian Onehealth vs. Cofoe Medical Technology | Meinian Onehealth vs. Guangzhou Automobile Group | Meinian Onehealth vs. Songz Automobile Air | Meinian Onehealth vs. Xian International Medical |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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