Correlation Between Hangzhou Coco and Hengkang Medical
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By analyzing existing cross correlation between Hangzhou Coco Healthcare and Hengkang Medical Group, you can compare the effects of market volatilities on Hangzhou Coco 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 Hangzhou Coco with a short position of Hengkang Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Coco and Hengkang Medical.
Diversification Opportunities for Hangzhou Coco and Hengkang Medical
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hangzhou and Hengkang is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Coco Healthcare and Hengkang Medical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengkang Medical and Hangzhou Coco 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 Hangzhou Coco Healthcare 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 Hangzhou Coco i.e., Hangzhou Coco and Hengkang Medical go up and down completely randomly.
Pair Corralation between Hangzhou Coco and Hengkang Medical
Assuming the 90 days trading horizon Hangzhou Coco is expected to generate 1.13 times less return on investment than Hengkang Medical. But when comparing it to its historical volatility, Hangzhou Coco Healthcare is 1.44 times less risky than Hengkang Medical. It trades about 0.1 of its potential returns per unit of risk. Hengkang Medical Group is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 290.00 in Hengkang Medical Group on September 12, 2024 and sell it today you would earn a total of 16.00 from holding Hengkang Medical Group or generate 5.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hangzhou Coco Healthcare vs. Hengkang Medical Group
Performance |
| Timeline |
| Hangzhou Coco Healthcare |
| Hengkang Medical |
Hangzhou Coco and Hengkang Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Coco and Hengkang Medical
The main advantage of trading using opposite Hangzhou Coco and Hengkang Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Coco 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.| Hangzhou Coco vs. China Petroleum Chemical | Hangzhou Coco vs. PetroChina Co Ltd | Hangzhou Coco vs. China State Construction | Hangzhou Coco vs. China Railway Group |
| Hengkang Medical vs. Guangzhou Haige Communications | Hengkang Medical vs. Xinjiang Baodi Mining | Hengkang Medical vs. Zhengzhou Coal Mining | Hengkang Medical vs. Wintao Communications Co |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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