Correlation Between 159005 and Meinian Onehealth
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By analyzing existing cross correlation between 159005 and Meinian Onehealth Healthcare, you can compare the effects of market volatilities on 159005 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 159005 with a short position of Meinian Onehealth. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159005 and Meinian Onehealth.
Diversification Opportunities for 159005 and Meinian Onehealth
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 159005 and Meinian is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding 159005 and Meinian Onehealth Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meinian Onehealth and 159005 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 159005 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 159005 i.e., 159005 and Meinian Onehealth go up and down completely randomly.
Pair Corralation between 159005 and Meinian Onehealth
Assuming the 90 days trading horizon 159005 is expected to generate 86.81 times less return on investment than Meinian Onehealth. But when comparing it to its historical volatility, 159005 is 115.37 times less risky than Meinian Onehealth. It trades about 0.21 of its potential returns per unit of risk. Meinian Onehealth Healthcare is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 442.00 in Meinian Onehealth Healthcare on August 30, 2024 and sell it today you would earn a total of 48.00 from holding Meinian Onehealth Healthcare or generate 10.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
159005 vs. Meinian Onehealth Healthcare
Performance |
| Timeline |
| 159005 |
| Meinian Onehealth |
159005 and Meinian Onehealth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159005 and Meinian Onehealth
The main advantage of trading using opposite 159005 and Meinian Onehealth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159005 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.The idea behind 159005 and Meinian Onehealth Healthcare pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Meinian Onehealth vs. Kweichow Moutai Co | Meinian Onehealth vs. Shenzhen Mindray Bio Medical | Meinian Onehealth vs. Jiangsu Pacific Quartz | Meinian Onehealth vs. G bits Network Technology |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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