Correlation Between Hangzhou Minsheng and Shantou Wanshun
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By analyzing existing cross correlation between Hangzhou Minsheng Healthcare and Shantou Wanshun Package, you can compare the effects of market volatilities on Hangzhou Minsheng and Shantou Wanshun 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 Minsheng with a short position of Shantou Wanshun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Minsheng and Shantou Wanshun.
Diversification Opportunities for Hangzhou Minsheng and Shantou Wanshun
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hangzhou and Shantou is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Minsheng Healthcare and Shantou Wanshun Package in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shantou Wanshun Package and Hangzhou Minsheng 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 Minsheng Healthcare are associated (or correlated) with Shantou Wanshun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shantou Wanshun Package has no effect on the direction of Hangzhou Minsheng i.e., Hangzhou Minsheng and Shantou Wanshun go up and down completely randomly.
Pair Corralation between Hangzhou Minsheng and Shantou Wanshun
Assuming the 90 days trading horizon Hangzhou Minsheng Healthcare is expected to under-perform the Shantou Wanshun. In addition to that, Hangzhou Minsheng is 1.11 times more volatile than Shantou Wanshun Package. It trades about -0.07 of its total potential returns per unit of risk. Shantou Wanshun Package is currently generating about -0.04 per unit of volatility. If you would invest 968.00 in Shantou Wanshun Package on October 29, 2024 and sell it today you would lose (515.00) from holding Shantou Wanshun Package or give up 53.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 70.12% |
| Values | Daily Returns |
Hangzhou Minsheng Healthcare vs. Shantou Wanshun Package
Performance |
| Timeline |
| Hangzhou Minsheng |
| Shantou Wanshun Package |
Hangzhou Minsheng and Shantou Wanshun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Minsheng and Shantou Wanshun
The main advantage of trading using opposite Hangzhou Minsheng and Shantou Wanshun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Minsheng position performs unexpectedly, Shantou Wanshun 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 Shantou Wanshun will offset losses from the drop in Shantou Wanshun's long position.| Hangzhou Minsheng vs. Bingo Software Co | Hangzhou Minsheng vs. Linkage Software Co | Hangzhou Minsheng vs. Quectel Wireless Solutions | Hangzhou Minsheng vs. Hainan HNA Infrastructure |
| Shantou Wanshun vs. Hainan Haiqi Transportation | Shantou Wanshun vs. Chengtun Mining Group | Shantou Wanshun vs. Beingmate Baby Child | Shantou Wanshun vs. Hefei Metalforming Mach |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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