Correlation Between Wenzhou Kangning and MetLife
Can any of the company-specific risk be diversified away by investing in both Wenzhou Kangning and MetLife 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 MetLife 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 MetLife, you can compare the effects of market volatilities on Wenzhou Kangning and MetLife 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 MetLife. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wenzhou Kangning and MetLife.
Diversification Opportunities for Wenzhou Kangning and MetLife
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Wenzhou and MetLife is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Wenzhou Kangning Hospital and MetLife in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MetLife 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 MetLife. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MetLife has no effect on the direction of Wenzhou Kangning i.e., Wenzhou Kangning and MetLife go up and down completely randomly.
Pair Corralation between Wenzhou Kangning and MetLife
If you would invest 83.00 in Wenzhou Kangning Hospital on October 25, 2024 and sell it today you would earn a total of 51.00 from holding Wenzhou Kangning Hospital or generate 61.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Wenzhou Kangning Hospital vs. MetLife
Performance |
| Timeline |
| Wenzhou Kangning Hospital |
| MetLife |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
Wenzhou Kangning and MetLife Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wenzhou Kangning and MetLife
The main advantage of trading using opposite Wenzhou Kangning and MetLife positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wenzhou Kangning position performs unexpectedly, MetLife 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 MetLife will offset losses from the drop in MetLife's long position.| Wenzhou Kangning vs. Apple Inc | Wenzhou Kangning vs. Apple Inc | Wenzhou Kangning vs. Apple Inc | Wenzhou Kangning vs. Apple Inc |
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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