Correlation Between Shandong Sanyuan and Hengkang Medical
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By analyzing existing cross correlation between Shandong Sanyuan Biotechnology and Hengkang Medical Group, you can compare the effects of market volatilities on Shandong Sanyuan 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 Shandong Sanyuan with a short position of Hengkang Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Sanyuan and Hengkang Medical.
Diversification Opportunities for Shandong Sanyuan and Hengkang Medical
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shandong and Hengkang is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Sanyuan Biotechnology and Hengkang Medical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengkang Medical and Shandong Sanyuan 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 Shandong Sanyuan Biotechnology 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 Shandong Sanyuan i.e., Shandong Sanyuan and Hengkang Medical go up and down completely randomly.
Pair Corralation between Shandong Sanyuan and Hengkang Medical
Assuming the 90 days trading horizon Shandong Sanyuan Biotechnology is expected to generate 0.71 times more return on investment than Hengkang Medical. However, Shandong Sanyuan Biotechnology is 1.41 times less risky than Hengkang Medical. It trades about -0.03 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 3,496 in Shandong Sanyuan Biotechnology on October 15, 2024 and sell it today you would lose (1,064) from holding Shandong Sanyuan Biotechnology or give up 30.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Sanyuan Biotechnology vs. Hengkang Medical Group
Performance |
| Timeline |
| Shandong Sanyuan Bio |
| Hengkang Medical |
Shandong Sanyuan and Hengkang Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Sanyuan and Hengkang Medical
The main advantage of trading using opposite Shandong Sanyuan and Hengkang Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Sanyuan 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.| Shandong Sanyuan vs. Shenyang Blue Silver | Shandong Sanyuan vs. Harvest Fund Management | Shandong Sanyuan vs. Guangdong Silvere Sci | Shandong Sanyuan vs. Tianjin Silvery Dragon |
| 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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