Correlation Between Changjiang Publishing and Hengkang Medical
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By analyzing existing cross correlation between Changjiang Publishing Media and Hengkang Medical Group, you can compare the effects of market volatilities on Changjiang Publishing 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 Changjiang Publishing with a short position of Hengkang Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changjiang Publishing and Hengkang Medical.
Diversification Opportunities for Changjiang Publishing and Hengkang Medical
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Changjiang and Hengkang is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Changjiang Publishing Media and Hengkang Medical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengkang Medical and Changjiang Publishing 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 Changjiang Publishing Media 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 Changjiang Publishing i.e., Changjiang Publishing and Hengkang Medical go up and down completely randomly.
Pair Corralation between Changjiang Publishing and Hengkang Medical
Assuming the 90 days trading horizon Changjiang Publishing Media is expected to under-perform the Hengkang Medical. But the stock apears to be less risky and, when comparing its historical volatility, Changjiang Publishing Media is 1.17 times less risky than Hengkang Medical. The stock trades about -0.12 of its potential returns per unit of risk. The Hengkang Medical Group is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 258.00 in Hengkang Medical Group on November 3, 2024 and sell it today you would lose (10.00) from holding Hengkang Medical Group or give up 3.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changjiang Publishing Media vs. Hengkang Medical Group
Performance |
| Timeline |
| Changjiang Publishing |
| Hengkang Medical |
Changjiang Publishing and Hengkang Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changjiang Publishing and Hengkang Medical
The main advantage of trading using opposite Changjiang Publishing and Hengkang Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changjiang Publishing 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.| Changjiang Publishing vs. Yan Tai Shuang | Changjiang Publishing vs. Jiamei Food Packaging | Changjiang Publishing vs. JuneYao Dairy Co | Changjiang Publishing vs. Youyou Foods Co |
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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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