Correlation Between Shanghai Rongtai and Meinian Onehealth
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By analyzing existing cross correlation between Shanghai Rongtai Health and Meinian Onehealth Healthcare, you can compare the effects of market volatilities on Shanghai Rongtai and Meinian Onehealth 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 Shanghai Rongtai with a short position of Meinian Onehealth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Rongtai and Meinian Onehealth.
Diversification Opportunities for Shanghai Rongtai and Meinian Onehealth
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shanghai and Meinian is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Rongtai Health and Meinian Onehealth Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meinian Onehealth and Shanghai Rongtai 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 Shanghai Rongtai Health are associated (or correlated) with Meinian Onehealth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meinian Onehealth has no effect on the direction of Shanghai Rongtai i.e., Shanghai Rongtai and Meinian Onehealth go up and down completely randomly.
Pair Corralation between Shanghai Rongtai and Meinian Onehealth
Assuming the 90 days trading horizon Shanghai Rongtai Health is expected to under-perform the Meinian Onehealth. In addition to that, Shanghai Rongtai is 1.0 times more volatile than Meinian Onehealth Healthcare. It trades about -0.01 of its total potential returns per unit of risk. Meinian Onehealth Healthcare is currently generating about 0.0 per unit of volatility. If you would invest 543.00 in Meinian Onehealth Healthcare on September 3, 2024 and sell it today you would lose (51.00) from holding Meinian Onehealth Healthcare or give up 9.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Rongtai Health vs. Meinian Onehealth Healthcare
Performance |
| Timeline |
| Shanghai Rongtai Health |
| Meinian Onehealth |
Shanghai Rongtai and Meinian Onehealth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Rongtai and Meinian Onehealth
The main advantage of trading using opposite Shanghai Rongtai and Meinian Onehealth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Rongtai position performs unexpectedly, Meinian Onehealth 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 Meinian Onehealth will offset losses from the drop in Meinian Onehealth's long position.| Shanghai Rongtai vs. PetroChina Co Ltd | Shanghai Rongtai vs. China Mobile Limited | Shanghai Rongtai vs. Industrial and Commercial | Shanghai Rongtai vs. China Life Insurance |
| Meinian Onehealth vs. Chengdu Kanghua Biological | Meinian Onehealth vs. Beijing Wantai Biological | Meinian Onehealth vs. Suzhou Novoprotein Scientific | Meinian Onehealth vs. Aluminum Corp of |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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