Correlation Between Winner Medical and Huaneng Lancang
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By analyzing existing cross correlation between Winner Medical Co and Huaneng Lancang River, you can compare the effects of market volatilities on Winner Medical and Huaneng Lancang 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 Winner Medical with a short position of Huaneng Lancang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Winner Medical and Huaneng Lancang.
Diversification Opportunities for Winner Medical and Huaneng Lancang
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Winner and Huaneng is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Winner Medical Co and Huaneng Lancang River in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huaneng Lancang River and Winner Medical 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 Winner Medical Co are associated (or correlated) with Huaneng Lancang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huaneng Lancang River has no effect on the direction of Winner Medical i.e., Winner Medical and Huaneng Lancang go up and down completely randomly.
Pair Corralation between Winner Medical and Huaneng Lancang
Assuming the 90 days trading horizon Winner Medical Co is expected to generate 2.53 times more return on investment than Huaneng Lancang. However, Winner Medical is 2.53 times more volatile than Huaneng Lancang River. It trades about 0.28 of its potential returns per unit of risk. Huaneng Lancang River is currently generating about 0.02 per unit of risk. If you would invest 3,340 in Winner Medical Co on September 19, 2024 and sell it today you would earn a total of 705.00 from holding Winner Medical Co or generate 21.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Winner Medical Co vs. Huaneng Lancang River
Performance |
| Timeline |
| Winner Medical |
| Huaneng Lancang River |
Winner Medical and Huaneng Lancang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Winner Medical and Huaneng Lancang
The main advantage of trading using opposite Winner Medical and Huaneng Lancang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Winner Medical position performs unexpectedly, Huaneng Lancang 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 Huaneng Lancang will offset losses from the drop in Huaneng Lancang's long position.| Winner Medical vs. Industrial and Commercial | Winner Medical vs. Kweichow Moutai Co | Winner Medical vs. Agricultural Bank of | Winner Medical vs. China Mobile Limited |
| Huaneng Lancang vs. Winner Medical Co | Huaneng Lancang vs. Citic Guoan Wine | Huaneng Lancang vs. Chongqing Brewery Co | Huaneng Lancang vs. Innovative Medical Management |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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