Correlation Between Healthcare and Tongling Nonferrous
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By analyzing existing cross correlation between Healthcare Co and Tongling Nonferrous Metals, you can compare the effects of market volatilities on Healthcare and Tongling Nonferrous 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 Healthcare with a short position of Tongling Nonferrous. Check out your portfolio center. Please also check ongoing floating volatility patterns of Healthcare and Tongling Nonferrous.
Diversification Opportunities for Healthcare and Tongling Nonferrous
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Healthcare and Tongling is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Healthcare Co and Tongling Nonferrous Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongling Nonferrous and Healthcare 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 Healthcare Co are associated (or correlated) with Tongling Nonferrous. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tongling Nonferrous has no effect on the direction of Healthcare i.e., Healthcare and Tongling Nonferrous go up and down completely randomly.
Pair Corralation between Healthcare and Tongling Nonferrous
Assuming the 90 days trading horizon Healthcare Co is expected to under-perform the Tongling Nonferrous. In addition to that, Healthcare is 2.4 times more volatile than Tongling Nonferrous Metals. It trades about -0.4 of its total potential returns per unit of risk. Tongling Nonferrous Metals is currently generating about -0.31 per unit of volatility. If you would invest 345.00 in Tongling Nonferrous Metals on October 14, 2024 and sell it today you would lose (23.00) from holding Tongling Nonferrous Metals or give up 6.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Healthcare Co vs. Tongling Nonferrous Metals
Performance |
| Timeline |
| Healthcare |
| Tongling Nonferrous |
Healthcare and Tongling Nonferrous Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Healthcare and Tongling Nonferrous
The main advantage of trading using opposite Healthcare and Tongling Nonferrous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Healthcare position performs unexpectedly, Tongling Nonferrous 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 Tongling Nonferrous will offset losses from the drop in Tongling Nonferrous' long position.| Healthcare vs. Chongqing Brewery Co | Healthcare vs. Jinhui Liquor Co | Healthcare vs. Holitech Technology Co | Healthcare vs. Eyebright Medical Technology |
| Tongling Nonferrous vs. PKU HealthCare Corp | Tongling Nonferrous vs. Sanbo Hospital Management | Tongling Nonferrous vs. Healthcare Co | Tongling Nonferrous vs. Mingchen Health Co |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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