Correlation Between SS Healthcare and Grand Plastic
Can any of the company-specific risk be diversified away by investing in both SS Healthcare and Grand Plastic at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining SS Healthcare and Grand Plastic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SS Healthcare Holding and Grand Plastic Technology, you can compare the effects of market volatilities on SS Healthcare and Grand Plastic 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 SS Healthcare with a short position of Grand Plastic. Check out your portfolio center. Please also check ongoing floating volatility patterns of SS Healthcare and Grand Plastic.
Diversification Opportunities for SS Healthcare and Grand Plastic
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between 4198 and Grand is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding SS Healthcare Holding and Grand Plastic Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand Plastic Technology and SS Healthcare 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 SS Healthcare Holding are associated (or correlated) with Grand Plastic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand Plastic Technology has no effect on the direction of SS Healthcare i.e., SS Healthcare and Grand Plastic go up and down completely randomly.
Pair Corralation between SS Healthcare and Grand Plastic
Assuming the 90 days trading horizon SS Healthcare Holding is expected to under-perform the Grand Plastic. But the stock apears to be less risky and, when comparing its historical volatility, SS Healthcare Holding is 1.02 times less risky than Grand Plastic. The stock trades about -0.1 of its potential returns per unit of risk. The Grand Plastic Technology is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 175,500 in Grand Plastic Technology on September 12, 2024 and sell it today you would lose (500.00) from holding Grand Plastic Technology or give up 0.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SS Healthcare Holding vs. Grand Plastic Technology
Performance |
| Timeline |
| SS Healthcare Holding |
| Grand Plastic Technology |
SS Healthcare and Grand Plastic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SS Healthcare and Grand Plastic
The main advantage of trading using opposite SS Healthcare and Grand Plastic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SS Healthcare position performs unexpectedly, Grand Plastic 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 Grand Plastic will offset losses from the drop in Grand Plastic's long position.| SS Healthcare vs. Universal Vision Biotechnology | SS Healthcare vs. Excelsior Medical Co | SS Healthcare vs. Pacific Hospital Supply | SS Healthcare vs. Ruentex Development Co |
| Grand Plastic vs. Sino American Silicon Products | Grand Plastic vs. Elan Microelectronics Corp | Grand Plastic vs. Greatek Electronics | Grand Plastic vs. Ruentex Development 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 Stocks Directory module to find actively traded stocks across global markets.
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