Correlation Between Shanghai Pudong and Meinian Onehealth
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By analyzing existing cross correlation between Shanghai Pudong Development and Meinian Onehealth Healthcare, you can compare the effects of market volatilities on Shanghai Pudong and Meinian Onehealth 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 Shanghai Pudong with a short position of Meinian Onehealth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Pudong and Meinian Onehealth.
Diversification Opportunities for Shanghai Pudong and Meinian Onehealth
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shanghai and Meinian is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Pudong Development and Meinian Onehealth Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meinian Onehealth and Shanghai Pudong 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 Shanghai Pudong Development are associated (or correlated) with Meinian Onehealth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meinian Onehealth has no effect on the direction of Shanghai Pudong i.e., Shanghai Pudong and Meinian Onehealth go up and down completely randomly.
Pair Corralation between Shanghai Pudong and Meinian Onehealth
Assuming the 90 days trading horizon Shanghai Pudong Development is expected to under-perform the Meinian Onehealth. But the stock apears to be less risky and, when comparing its historical volatility, Shanghai Pudong Development is 5.35 times less risky than Meinian Onehealth. The stock trades about -0.3 of its potential returns per unit of risk. The Meinian Onehealth Healthcare is currently generating about 0.47 of returns per unit of risk over similar time horizon. If you would invest 436.00 in Meinian Onehealth Healthcare on November 28, 2024 and sell it today you would earn a total of 220.00 from holding Meinian Onehealth Healthcare or generate 50.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Pudong Development vs. Meinian Onehealth Healthcare
Performance |
| Timeline |
| Shanghai Pudong Deve |
| Meinian Onehealth |
Shanghai Pudong and Meinian Onehealth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Pudong and Meinian Onehealth
The main advantage of trading using opposite Shanghai Pudong and Meinian Onehealth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Pudong position performs unexpectedly, Meinian Onehealth 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 Meinian Onehealth will offset losses from the drop in Meinian Onehealth's long position.| Shanghai Pudong vs. BizConf Telecom Co | Shanghai Pudong vs. China World Trade | Shanghai Pudong vs. Shaanxi Meineng Clean | Shanghai Pudong vs. State Grid InformationCommunication |
| Meinian Onehealth vs. Shanghai Yanpu Metal | Meinian Onehealth vs. Zijin Mining Group | Meinian Onehealth vs. Guangzhou Automobile Group | Meinian Onehealth vs. Keda Clean Energy |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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