Correlation Between East Money and Hengkang Medical
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By analyzing existing cross correlation between East Money Information and Hengkang Medical Group, you can compare the effects of market volatilities on East Money 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 East Money with a short position of Hengkang Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of East Money and Hengkang Medical.
Diversification Opportunities for East Money and Hengkang Medical
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between East and Hengkang is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding East Money Information and Hengkang Medical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengkang Medical and East Money 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 East Money Information 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 East Money i.e., East Money and Hengkang Medical go up and down completely randomly.
Pair Corralation between East Money and Hengkang Medical
Assuming the 90 days trading horizon East Money Information is expected to generate 1.33 times more return on investment than Hengkang Medical. However, East Money is 1.33 times more volatile than Hengkang Medical Group. It trades about -0.14 of its potential returns per unit of risk. Hengkang Medical Group is currently generating about -0.26 per unit of risk. If you would invest 2,655 in East Money Information on October 28, 2024 and sell it today you would lose (246.00) from holding East Money Information or give up 9.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
East Money Information vs. Hengkang Medical Group
Performance |
| Timeline |
| East Money Information |
| Hengkang Medical |
East Money and Hengkang Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with East Money and Hengkang Medical
The main advantage of trading using opposite East Money and Hengkang Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if East Money 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.| East Money vs. Double Medical Technology | East Money vs. HanS Laser Tech | East Money vs. Chison Medical Technologies | East Money vs. Linktel Technologies Co |
| Hengkang Medical vs. Linzhou Heavy Machinery | Hengkang Medical vs. Xiangyang Automobile Bearing | Hengkang Medical vs. Ningbo Fangzheng Automobile | Hengkang Medical vs. Changchun Engley Automobile |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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