Correlation Between Hangzhou Minsheng and Shanghai Rongtai
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By analyzing existing cross correlation between Hangzhou Minsheng Healthcare and Shanghai Rongtai Health, you can compare the effects of market volatilities on Hangzhou Minsheng and Shanghai Rongtai 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 Shanghai Rongtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Minsheng and Shanghai Rongtai.
Diversification Opportunities for Hangzhou Minsheng and Shanghai Rongtai
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hangzhou and Shanghai is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Minsheng Healthcare and Shanghai Rongtai Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Rongtai Health 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 Shanghai Rongtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Rongtai Health has no effect on the direction of Hangzhou Minsheng i.e., Hangzhou Minsheng and Shanghai Rongtai go up and down completely randomly.
Pair Corralation between Hangzhou Minsheng and Shanghai Rongtai
Assuming the 90 days trading horizon Hangzhou Minsheng Healthcare is expected to under-perform the Shanghai Rongtai. In addition to that, Hangzhou Minsheng is 1.03 times more volatile than Shanghai Rongtai Health. It trades about -0.06 of its total potential returns per unit of risk. Shanghai Rongtai Health is currently generating about 0.0 per unit of volatility. If you would invest 1,345 in Shanghai Rongtai Health on October 14, 2024 and sell it today you would lose (12.00) from holding Shanghai Rongtai Health or give up 0.89% 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. Shanghai Rongtai Health
Performance |
| Timeline |
| Hangzhou Minsheng |
| Shanghai Rongtai Health |
Hangzhou Minsheng and Shanghai Rongtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Minsheng and Shanghai Rongtai
The main advantage of trading using opposite Hangzhou Minsheng and Shanghai Rongtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Minsheng position performs unexpectedly, Shanghai Rongtai 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 Shanghai Rongtai will offset losses from the drop in Shanghai Rongtai's long position.| Hangzhou Minsheng vs. Tieling Newcity Investment | Hangzhou Minsheng vs. Eyebright Medical Technology | Hangzhou Minsheng vs. Jointo Energy Investment | Hangzhou Minsheng vs. 360 Security Technology |
| Shanghai Rongtai vs. Hangzhou Minsheng Healthcare | Shanghai Rongtai vs. Fujian Boss Software | Shanghai Rongtai vs. Inspur Software Co | Shanghai Rongtai vs. Youngy Health 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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