Correlation Between HeBei Jinniu and Hengkang Medical
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By analyzing existing cross correlation between HeBei Jinniu Chemical and Hengkang Medical Group, you can compare the effects of market volatilities on HeBei Jinniu 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 HeBei Jinniu with a short position of Hengkang Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of HeBei Jinniu and Hengkang Medical.
Diversification Opportunities for HeBei Jinniu and Hengkang Medical
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HeBei and Hengkang is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding HeBei Jinniu Chemical and Hengkang Medical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengkang Medical and HeBei Jinniu 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 HeBei Jinniu Chemical 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 HeBei Jinniu i.e., HeBei Jinniu and Hengkang Medical go up and down completely randomly.
Pair Corralation between HeBei Jinniu and Hengkang Medical
Assuming the 90 days trading horizon HeBei Jinniu Chemical is expected to generate 0.84 times more return on investment than Hengkang Medical. However, HeBei Jinniu Chemical is 1.2 times less risky than Hengkang Medical. It trades about 0.02 of its potential returns per unit of risk. Hengkang Medical Group is currently generating about -0.03 per unit of risk. If you would invest 508.00 in HeBei Jinniu Chemical on October 16, 2024 and sell it today you would earn a total of 57.00 from holding HeBei Jinniu Chemical or generate 11.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HeBei Jinniu Chemical vs. Hengkang Medical Group
Performance |
| Timeline |
| HeBei Jinniu Chemical |
| Hengkang Medical |
HeBei Jinniu and Hengkang Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HeBei Jinniu and Hengkang Medical
The main advantage of trading using opposite HeBei Jinniu and Hengkang Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HeBei Jinniu 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.| HeBei Jinniu vs. Liaoning Dingjide Petrochemical | HeBei Jinniu vs. Yuanjie Semiconductor Technology | HeBei Jinniu vs. Guangzhou Jointas Chemical | HeBei Jinniu vs. Shenyang Chemical Industry |
| Hengkang Medical vs. HeBei Jinniu Chemical | Hengkang Medical vs. Dymatic Chemicals | Hengkang Medical vs. Wuxi Chemical Equipment | Hengkang Medical vs. China Life Insurance |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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