Correlation Between Healthcare and Jiangsu Zhongtian
Specify exactly 2 symbols:
By analyzing existing cross correlation between Healthcare Co and Jiangsu Zhongtian Technology, you can compare the effects of market volatilities on Healthcare and Jiangsu Zhongtian 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 Jiangsu Zhongtian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Healthcare and Jiangsu Zhongtian.
Diversification Opportunities for Healthcare and Jiangsu Zhongtian
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Healthcare and Jiangsu is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Healthcare Co and Jiangsu Zhongtian Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Zhongtian 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 Jiangsu Zhongtian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Zhongtian has no effect on the direction of Healthcare i.e., Healthcare and Jiangsu Zhongtian go up and down completely randomly.
Pair Corralation between Healthcare and Jiangsu Zhongtian
Assuming the 90 days trading horizon Healthcare Co is expected to under-perform the Jiangsu Zhongtian. In addition to that, Healthcare is 1.07 times more volatile than Jiangsu Zhongtian Technology. It trades about -0.05 of its total potential returns per unit of risk. Jiangsu Zhongtian Technology is currently generating about 0.01 per unit of volatility. If you would invest 1,338 in Jiangsu Zhongtian Technology on October 14, 2024 and sell it today you would lose (26.00) from holding Jiangsu Zhongtian Technology or give up 1.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Healthcare Co vs. Jiangsu Zhongtian Technology
Performance |
| Timeline |
| Healthcare |
| Jiangsu Zhongtian |
Healthcare and Jiangsu Zhongtian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Healthcare and Jiangsu Zhongtian
The main advantage of trading using opposite Healthcare and Jiangsu Zhongtian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Healthcare position performs unexpectedly, Jiangsu Zhongtian 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 Jiangsu Zhongtian will offset losses from the drop in Jiangsu Zhongtian's long position.| Healthcare vs. Sanbo Hospital Management | Healthcare vs. Innovative Medical Management | Healthcare vs. Heren Health Co | Healthcare vs. Everjoy Health Group |
| Jiangsu Zhongtian vs. Shanghai Yaoji Playing | Jiangsu Zhongtian vs. Sinomach General Machinery | Jiangsu Zhongtian vs. Shannon Semiconductor Technology | Jiangsu Zhongtian vs. Shanghai V Test Semiconductor |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |