Correlation Between Zhejiang Construction and Hengkang Medical
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By analyzing existing cross correlation between Zhejiang Construction Investment and Hengkang Medical Group, you can compare the effects of market volatilities on Zhejiang Construction and Hengkang 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 Zhejiang Construction with a short position of Hengkang Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Construction and Hengkang Medical.
Diversification Opportunities for Zhejiang Construction and Hengkang Medical
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhejiang and Hengkang is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Construction Investme and Hengkang Medical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengkang Medical and Zhejiang Construction 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 Zhejiang Construction Investment are associated (or correlated) with Hengkang Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengkang Medical has no effect on the direction of Zhejiang Construction i.e., Zhejiang Construction and Hengkang Medical go up and down completely randomly.
Pair Corralation between Zhejiang Construction and Hengkang Medical
Assuming the 90 days trading horizon Zhejiang Construction Investment is expected to under-perform the Hengkang Medical. But the stock apears to be less risky and, when comparing its historical volatility, Zhejiang Construction Investment is 2.2 times less risky than Hengkang Medical. The stock trades about -0.31 of its potential returns per unit of risk. The Hengkang Medical Group is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 273.00 in Hengkang Medical Group on October 24, 2024 and sell it today you would lose (29.00) from holding Hengkang Medical Group or give up 10.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Construction Investme vs. Hengkang Medical Group
Performance |
| Timeline |
| Zhejiang Construction |
| Hengkang Medical |
Zhejiang Construction and Hengkang Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Construction and Hengkang Medical
The main advantage of trading using opposite Zhejiang Construction and Hengkang Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Construction position performs unexpectedly, Hengkang 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 Hengkang Medical will offset losses from the drop in Hengkang Medical's long position.| Zhejiang Construction vs. Dareway Software Co | Zhejiang Construction vs. Impulse Qingdao Health | Zhejiang Construction vs. Hangzhou Pinming Software | Zhejiang Construction vs. Youngy Health Co |
| Hengkang Medical vs. Agricultural Bank of | Hengkang Medical vs. Industrial and Commercial | Hengkang Medical vs. Bank of China | Hengkang Medical vs. China Construction Bank |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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