Correlation Between Chengdu Kanghua and Heren Health
Specify exactly 2 symbols:
By analyzing existing cross correlation between Chengdu Kanghua Biological and Heren Health Co, you can compare the effects of market volatilities on Chengdu Kanghua and Heren 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 Heren Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Kanghua and Heren Health.
Diversification Opportunities for Chengdu Kanghua and Heren Health
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chengdu and Heren is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Kanghua Biological and Heren Health Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heren 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 Heren Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heren Health has no effect on the direction of Chengdu Kanghua i.e., Chengdu Kanghua and Heren Health go up and down completely randomly.
Pair Corralation between Chengdu Kanghua and Heren Health
Assuming the 90 days trading horizon Chengdu Kanghua Biological is expected to under-perform the Heren Health. But the stock apears to be less risky and, when comparing its historical volatility, Chengdu Kanghua Biological is 1.18 times less risky than Heren Health. The stock trades about -0.2 of its potential returns per unit of risk. The Heren Health Co is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 1,545 in Heren Health Co on September 3, 2024 and sell it today you would lose (87.00) from holding Heren Health Co or give up 5.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Kanghua Biological vs. Heren Health Co
Performance |
| Timeline |
| Chengdu Kanghua Biol |
| Heren Health |
Chengdu Kanghua and Heren Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Kanghua and Heren Health
The main advantage of trading using opposite Chengdu Kanghua and Heren Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Kanghua position performs unexpectedly, Heren 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 Heren Health will offset losses from the drop in Heren Health's long position.| Chengdu Kanghua vs. Chengdu Xinzhu RoadBridge | Chengdu Kanghua vs. China Life Insurance | Chengdu Kanghua vs. Shaanxi Broadcast TV | Chengdu Kanghua vs. Tianshan Aluminum Group |
| Heren Health vs. Chengdu Kanghua Biological | Heren Health vs. Beijing Wantai Biological | Heren Health vs. Suzhou Novoprotein Scientific | Heren Health vs. Aluminum Corp of |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |