Correlation Between Kangping Technology and Hengkang Medical
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By analyzing existing cross correlation between Kangping Technology Co and Hengkang Medical Group, you can compare the effects of market volatilities on Kangping Technology 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 Kangping Technology with a short position of Hengkang Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kangping Technology and Hengkang Medical.
Diversification Opportunities for Kangping Technology and Hengkang Medical
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kangping and Hengkang is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Kangping Technology Co and Hengkang Medical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengkang Medical and Kangping Technology 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 Kangping Technology Co 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 Kangping Technology i.e., Kangping Technology and Hengkang Medical go up and down completely randomly.
Pair Corralation between Kangping Technology and Hengkang Medical
Assuming the 90 days trading horizon Kangping Technology Co is expected to generate 1.02 times more return on investment than Hengkang Medical. However, Kangping Technology is 1.02 times more volatile than Hengkang Medical Group. It trades about 0.02 of its potential returns per unit of risk. Hengkang Medical Group is currently generating about -0.02 per unit of risk. If you would invest 1,839 in Kangping Technology Co on October 15, 2024 and sell it today you would earn a total of 134.00 from holding Kangping Technology Co or generate 7.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kangping Technology Co vs. Hengkang Medical Group
Performance |
| Timeline |
| Kangping Technology |
| Hengkang Medical |
Kangping Technology and Hengkang Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kangping Technology and Hengkang Medical
The main advantage of trading using opposite Kangping Technology and Hengkang Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kangping Technology 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.| Kangping Technology vs. Shanghai Rongtai Health | Kangping Technology vs. Healthcare Co | Kangping Technology vs. Mango Excellent Media | Kangping Technology vs. Youngy Health Co |
| Hengkang Medical vs. HeBei Jinniu Chemical | Hengkang Medical vs. Dymatic Chemicals | Hengkang Medical vs. Wuxi Chemical Equipment | Hengkang Medical vs. China Life Insurance |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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