Correlation Between Chahua Modern and Hengkang Medical
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By analyzing existing cross correlation between Chahua Modern Housewares and Hengkang Medical Group, you can compare the effects of market volatilities on Chahua Modern and Hengkang Medical 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 Chahua Modern with a short position of Hengkang Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chahua Modern and Hengkang Medical.
Diversification Opportunities for Chahua Modern and Hengkang Medical
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Chahua and Hengkang is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Chahua Modern Housewares and Hengkang Medical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengkang Medical and Chahua Modern 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 Chahua Modern Housewares are associated (or correlated) with Hengkang Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengkang Medical has no effect on the direction of Chahua Modern i.e., Chahua Modern and Hengkang Medical go up and down completely randomly.
Pair Corralation between Chahua Modern and Hengkang Medical
Assuming the 90 days trading horizon Chahua Modern Housewares is expected to generate 1.09 times more return on investment than Hengkang Medical. However, Chahua Modern is 1.09 times more volatile than Hengkang Medical Group. It trades about 0.24 of its potential returns per unit of risk. Hengkang Medical Group is currently generating about 0.19 per unit of risk. If you would invest 1,284 in Chahua Modern Housewares on August 28, 2024 and sell it today you would earn a total of 987.00 from holding Chahua Modern Housewares or generate 76.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chahua Modern Housewares vs. Hengkang Medical Group
Performance |
| Timeline |
| Chahua Modern Housewares |
| Hengkang Medical |
Chahua Modern and Hengkang Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chahua Modern and Hengkang Medical
The main advantage of trading using opposite Chahua Modern and Hengkang Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chahua Modern position performs unexpectedly, Hengkang Medical 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 Hengkang Medical will offset losses from the drop in Hengkang Medical's long position.| Chahua Modern vs. Lutian Machinery Co | Chahua Modern vs. China Longyuan Power | Chahua Modern vs. Changshu Tongrun Auto | Chahua Modern vs. PetroChina Co Ltd |
| Hengkang Medical vs. Industrial and Commercial | Hengkang Medical vs. Agricultural Bank of | Hengkang Medical vs. China Construction Bank | Hengkang Medical vs. Bank of China |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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