Correlation Between Healthcare and Kangping Technology
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By analyzing existing cross correlation between Healthcare Co and Kangping Technology Co, you can compare the effects of market volatilities on Healthcare and Kangping Technology 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 Kangping Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Healthcare and Kangping Technology.
Diversification Opportunities for Healthcare and Kangping Technology
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Healthcare and Kangping is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Healthcare Co and Kangping Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kangping Technology 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 Kangping Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kangping Technology has no effect on the direction of Healthcare i.e., Healthcare and Kangping Technology go up and down completely randomly.
Pair Corralation between Healthcare and Kangping Technology
Assuming the 90 days trading horizon Healthcare Co is expected to under-perform the Kangping Technology. But the stock apears to be less risky and, when comparing its historical volatility, Healthcare Co is 1.32 times less risky than Kangping Technology. The stock trades about -0.04 of its potential returns per unit of risk. The Kangping Technology Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,839 in Kangping Technology Co on October 16, 2024 and sell it today you would earn a total of 148.00 from holding Kangping Technology Co or generate 8.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Healthcare Co vs. Kangping Technology Co
Performance |
| Timeline |
| Healthcare |
| Kangping Technology |
Healthcare and Kangping Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Healthcare and Kangping Technology
The main advantage of trading using opposite Healthcare and Kangping Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Healthcare position performs unexpectedly, Kangping Technology 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 Kangping Technology will offset losses from the drop in Kangping Technology's long position.| Healthcare vs. Eyebright Medical Technology | Healthcare vs. Holitech Technology Co | Healthcare vs. Porton Fine Chemicals | Healthcare vs. Montage Technology Co |
| Kangping Technology vs. Shanghai Rongtai Health | Kangping Technology vs. Healthcare Co | Kangping Technology vs. Mango Excellent Media | Kangping Technology vs. Youngy 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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