Correlation Between Shanghai Jinfeng and Hengkang Medical
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By analyzing existing cross correlation between Shanghai Jinfeng Wine and Hengkang Medical Group, you can compare the effects of market volatilities on Shanghai Jinfeng and Hengkang Medical 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 Jinfeng with a short position of Hengkang Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Jinfeng and Hengkang Medical.
Diversification Opportunities for Shanghai Jinfeng and Hengkang Medical
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shanghai and Hengkang is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Jinfeng Wine and Hengkang Medical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengkang Medical and Shanghai Jinfeng 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 Jinfeng Wine are associated (or correlated) with Hengkang Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengkang Medical has no effect on the direction of Shanghai Jinfeng i.e., Shanghai Jinfeng and Hengkang Medical go up and down completely randomly.
Pair Corralation between Shanghai Jinfeng and Hengkang Medical
Assuming the 90 days trading horizon Shanghai Jinfeng Wine is expected to generate 0.66 times more return on investment than Hengkang Medical. However, Shanghai Jinfeng Wine is 1.52 times less risky than Hengkang Medical. It trades about 0.06 of its potential returns per unit of risk. Hengkang Medical Group is currently generating about -0.01 per unit of risk. If you would invest 566.00 in Shanghai Jinfeng Wine on August 28, 2024 and sell it today you would earn a total of 15.00 from holding Shanghai Jinfeng Wine or generate 2.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Jinfeng Wine vs. Hengkang Medical Group
Performance |
| Timeline |
| Shanghai Jinfeng Wine |
| Hengkang Medical |
Shanghai Jinfeng and Hengkang Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Jinfeng and Hengkang Medical
The main advantage of trading using opposite Shanghai Jinfeng and Hengkang Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Jinfeng position performs unexpectedly, Hengkang Medical 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 Hengkang Medical will offset losses from the drop in Hengkang Medical's long position.| Shanghai Jinfeng vs. Anhui Huilong Agricultural | Shanghai Jinfeng vs. Luyin Investment Group | Shanghai Jinfeng vs. Weichai Heavy Machinery | Shanghai Jinfeng vs. Zhejiang Construction Investment |
| Hengkang Medical vs. Industrial and Commercial | Hengkang Medical vs. Agricultural Bank of | Hengkang Medical vs. China Construction Bank | Hengkang Medical vs. Bank of China |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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