Correlation Between Chengdu Kanghua and Youngy Health
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By analyzing existing cross correlation between Chengdu Kanghua Biological and Youngy Health Co, you can compare the effects of market volatilities on Chengdu Kanghua and Youngy Health 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 Chengdu Kanghua with a short position of Youngy Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Kanghua and Youngy Health.
Diversification Opportunities for Chengdu Kanghua and Youngy Health
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chengdu and Youngy is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Kanghua Biological and Youngy Health Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Youngy Health and Chengdu Kanghua 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 Chengdu Kanghua Biological are associated (or correlated) with Youngy Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Youngy Health has no effect on the direction of Chengdu Kanghua i.e., Chengdu Kanghua and Youngy Health go up and down completely randomly.
Pair Corralation between Chengdu Kanghua and Youngy Health
Assuming the 90 days trading horizon Chengdu Kanghua is expected to generate 1.88 times less return on investment than Youngy Health. But when comparing it to its historical volatility, Chengdu Kanghua Biological is 2.0 times less risky than Youngy Health. It trades about 0.28 of its potential returns per unit of risk. Youngy Health Co is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 351.00 in Youngy Health Co on November 18, 2024 and sell it today you would earn a total of 30.00 from holding Youngy Health Co or generate 8.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Kanghua Biological vs. Youngy Health Co
Performance |
| Timeline |
| Chengdu Kanghua Biol |
| Youngy Health |
Chengdu Kanghua and Youngy Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Kanghua and Youngy Health
The main advantage of trading using opposite Chengdu Kanghua and Youngy Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Kanghua position performs unexpectedly, Youngy Health 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 Youngy Health will offset losses from the drop in Youngy Health's long position.| Chengdu Kanghua vs. Ningbo Tech Bank Co | Chengdu Kanghua vs. BizConf Telecom Co | Chengdu Kanghua vs. Eastern Communications Co | Chengdu Kanghua vs. Industrial and Commercial |
| Youngy Health vs. Sanbo Hospital Management | Youngy Health vs. Suntar Environmental Technology | Youngy Health vs. Fujian Nanwang Environment | Youngy Health vs. Tongxing Environmental Protection |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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