Correlation Between Heren Health and Shanghai Rongtai
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By analyzing existing cross correlation between Heren Health Co and Shanghai Rongtai Health, you can compare the effects of market volatilities on Heren Health and Shanghai Rongtai 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 Heren Health with a short position of Shanghai Rongtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heren Health and Shanghai Rongtai.
Diversification Opportunities for Heren Health and Shanghai Rongtai
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Heren and Shanghai is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Heren Health Co and Shanghai Rongtai Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Rongtai Health and Heren 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 Heren Health Co are associated (or correlated) with Shanghai Rongtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Rongtai Health has no effect on the direction of Heren Health i.e., Heren Health and Shanghai Rongtai go up and down completely randomly.
Pair Corralation between Heren Health and Shanghai Rongtai
Assuming the 90 days trading horizon Heren Health is expected to generate 1.2 times less return on investment than Shanghai Rongtai. In addition to that, Heren Health is 1.92 times more volatile than Shanghai Rongtai Health. It trades about 0.08 of its total potential returns per unit of risk. Shanghai Rongtai Health is currently generating about 0.18 per unit of volatility. If you would invest 1,389 in Shanghai Rongtai Health on September 1, 2024 and sell it today you would earn a total of 97.00 from holding Shanghai Rongtai Health or generate 6.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Heren Health Co vs. Shanghai Rongtai Health
Performance |
| Timeline |
| Heren Health |
| Shanghai Rongtai Health |
Heren Health and Shanghai Rongtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heren Health and Shanghai Rongtai
The main advantage of trading using opposite Heren Health and Shanghai Rongtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heren Health position performs unexpectedly, Shanghai Rongtai 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 Shanghai Rongtai will offset losses from the drop in Shanghai Rongtai's long position.| Heren Health vs. Chengdu Kanghua Biological | Heren Health vs. Beijing Wantai Biological | Heren Health vs. Aluminum Corp of | Heren Health vs. COL Digital Publishing |
| Shanghai Rongtai vs. Hongrun Construction Group | Shanghai Rongtai vs. Tengda Construction Group | Shanghai Rongtai vs. Xiangyang Automobile Bearing | Shanghai Rongtai vs. Chongqing Changan 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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