Correlation Between Hangzhou Minsheng and Ningbo Homelink
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By analyzing existing cross correlation between Hangzhou Minsheng Healthcare and Ningbo Homelink Eco iTech, you can compare the effects of market volatilities on Hangzhou Minsheng and Ningbo Homelink 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 Ningbo Homelink. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Minsheng and Ningbo Homelink.
Diversification Opportunities for Hangzhou Minsheng and Ningbo Homelink
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hangzhou and Ningbo is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Minsheng Healthcare and Ningbo Homelink Eco iTech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Homelink Eco 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 Ningbo Homelink. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Homelink Eco has no effect on the direction of Hangzhou Minsheng i.e., Hangzhou Minsheng and Ningbo Homelink go up and down completely randomly.
Pair Corralation between Hangzhou Minsheng and Ningbo Homelink
Assuming the 90 days trading horizon Hangzhou Minsheng Healthcare is expected to under-perform the Ningbo Homelink. But the stock apears to be less risky and, when comparing its historical volatility, Hangzhou Minsheng Healthcare is 1.36 times less risky than Ningbo Homelink. The stock trades about -0.27 of its potential returns per unit of risk. The Ningbo Homelink Eco iTech is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 1,750 in Ningbo Homelink Eco iTech on October 12, 2024 and sell it today you would lose (120.00) from holding Ningbo Homelink Eco iTech or give up 6.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hangzhou Minsheng Healthcare vs. Ningbo Homelink Eco iTech
Performance |
| Timeline |
| Hangzhou Minsheng |
| Ningbo Homelink Eco |
Hangzhou Minsheng and Ningbo Homelink Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Minsheng and Ningbo Homelink
The main advantage of trading using opposite Hangzhou Minsheng and Ningbo Homelink positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Minsheng position performs unexpectedly, Ningbo Homelink 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 Ningbo Homelink will offset losses from the drop in Ningbo Homelink's long position.| Hangzhou Minsheng vs. Ningbo Jintian Copper | Hangzhou Minsheng vs. Hainan Mining Co | Hangzhou Minsheng vs. Shanghai Yanpu Metal | Hangzhou Minsheng vs. MayAir Technology Co |
| Ningbo Homelink vs. Everjoy Health Group | Ningbo Homelink vs. Hangzhou Minsheng Healthcare | Ningbo Homelink vs. Sunny Loan Top | Ningbo Homelink vs. Success Electronics |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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