Correlation Between Healthcare and Kangxin New
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By analyzing existing cross correlation between Healthcare Co and Kangxin New Materials, you can compare the effects of market volatilities on Healthcare and Kangxin New 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 Kangxin New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Healthcare and Kangxin New.
Diversification Opportunities for Healthcare and Kangxin New
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Healthcare and Kangxin is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Healthcare Co and Kangxin New Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kangxin New Materials 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 Kangxin New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kangxin New Materials has no effect on the direction of Healthcare i.e., Healthcare and Kangxin New go up and down completely randomly.
Pair Corralation between Healthcare and Kangxin New
Assuming the 90 days trading horizon Healthcare is expected to generate 2.84 times less return on investment than Kangxin New. But when comparing it to its historical volatility, Healthcare Co is 1.76 times less risky than Kangxin New. It trades about 0.17 of its potential returns per unit of risk. Kangxin New Materials is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 227.00 in Kangxin New Materials on September 13, 2024 and sell it today you would earn a total of 59.00 from holding Kangxin New Materials or generate 25.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Healthcare Co vs. Kangxin New Materials
Performance |
| Timeline |
| Healthcare |
| Kangxin New Materials |
Healthcare and Kangxin New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Healthcare and Kangxin New
The main advantage of trading using opposite Healthcare and Kangxin New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Healthcare position performs unexpectedly, Kangxin New 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 Kangxin New will offset losses from the drop in Kangxin New's long position.| Healthcare vs. Lutian Machinery Co | Healthcare vs. China Longyuan Power | Healthcare vs. PetroChina Co Ltd | Healthcare vs. Bank of China |
| Kangxin New vs. Zijin Mining Group | Kangxin New vs. Wanhua Chemical Group | Kangxin New vs. Baoshan Iron Steel | Kangxin New vs. Shandong Gold Mining |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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