Correlation Between Wenzhou Kangning and FEMALE HEALTH
Can any of the company-specific risk be diversified away by investing in both Wenzhou Kangning and FEMALE HEALTH 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 Wenzhou Kangning and FEMALE HEALTH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wenzhou Kangning Hospital and FEMALE HEALTH, you can compare the effects of market volatilities on Wenzhou Kangning and FEMALE HEALTH 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 Wenzhou Kangning with a short position of FEMALE HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wenzhou Kangning and FEMALE HEALTH.
Diversification Opportunities for Wenzhou Kangning and FEMALE HEALTH
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Wenzhou and FEMALE is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Wenzhou Kangning Hospital and FEMALE HEALTH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FEMALE HEALTH and Wenzhou Kangning 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 Wenzhou Kangning Hospital are associated (or correlated) with FEMALE HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FEMALE HEALTH has no effect on the direction of Wenzhou Kangning i.e., Wenzhou Kangning and FEMALE HEALTH go up and down completely randomly.
Pair Corralation between Wenzhou Kangning and FEMALE HEALTH
Assuming the 90 days trading horizon Wenzhou Kangning Hospital is expected to under-perform the FEMALE HEALTH. But the stock apears to be less risky and, when comparing its historical volatility, Wenzhou Kangning Hospital is 3.51 times less risky than FEMALE HEALTH. The stock trades about -0.24 of its potential returns per unit of risk. The FEMALE HEALTH is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 68.00 in FEMALE HEALTH on October 12, 2024 and sell it today you would earn a total of 1.00 from holding FEMALE HEALTH or generate 1.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wenzhou Kangning Hospital vs. FEMALE HEALTH
Performance |
| Timeline |
| Wenzhou Kangning Hospital |
| FEMALE HEALTH |
Wenzhou Kangning and FEMALE HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wenzhou Kangning and FEMALE HEALTH
The main advantage of trading using opposite Wenzhou Kangning and FEMALE HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wenzhou Kangning position performs unexpectedly, FEMALE HEALTH 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 FEMALE HEALTH will offset losses from the drop in FEMALE HEALTH's long position.| Wenzhou Kangning vs. WT OFFSHORE | Wenzhou Kangning vs. Richardson Electronics | Wenzhou Kangning vs. STORE ELECTRONIC | Wenzhou Kangning vs. Eidesvik Offshore ASA |
| FEMALE HEALTH vs. PennantPark Investment | FEMALE HEALTH vs. AM EAGLE OUTFITTERS | FEMALE HEALTH vs. Scottish Mortgage Investment | FEMALE HEALTH vs. HK Electric Investments |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |