Correlation Between Ming Yang and Hengkang Medical
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By analyzing existing cross correlation between Ming Yang Smart and Hengkang Medical Group, you can compare the effects of market volatilities on Ming Yang 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 Ming Yang with a short position of Hengkang Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Hengkang Medical.
Diversification Opportunities for Ming Yang and Hengkang Medical
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ming and Hengkang is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and Hengkang Medical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengkang Medical and Ming Yang 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 Ming Yang Smart 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 Ming Yang i.e., Ming Yang and Hengkang Medical go up and down completely randomly.
Pair Corralation between Ming Yang and Hengkang Medical
Assuming the 90 days trading horizon Ming Yang Smart is expected to under-perform the Hengkang Medical. But the stock apears to be less risky and, when comparing its historical volatility, Ming Yang Smart is 1.37 times less risky than Hengkang Medical. The stock trades about -0.14 of its potential returns per unit of risk. The Hengkang Medical Group is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 260.00 in Hengkang Medical Group on October 26, 2024 and sell it today you would lose (12.00) from holding Hengkang Medical Group or give up 4.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ming Yang Smart vs. Hengkang Medical Group
Performance |
| Timeline |
| Ming Yang Smart |
| Hengkang Medical |
Ming Yang and Hengkang Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and Hengkang Medical
The main advantage of trading using opposite Ming Yang and Hengkang Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang 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.| Ming Yang vs. Zhonghang Electronic Measuring | Ming Yang vs. Sichuan Yahua Industrial | Ming Yang vs. Semiconductor Manufacturing Electronics | Ming Yang vs. Guangdong Ellington Electronics |
| Hengkang Medical vs. Ming Yang Smart | Hengkang Medical vs. 159681 | Hengkang Medical vs. 159005 | Hengkang Medical vs. Loctek Ergonomic Technology |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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