Correlation Between Touchstone International and Hengkang Medical
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By analyzing existing cross correlation between Touchstone International Medical and Hengkang Medical Group, you can compare the effects of market volatilities on Touchstone International 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 Touchstone International with a short position of Hengkang Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Touchstone International and Hengkang Medical.
Diversification Opportunities for Touchstone International and Hengkang Medical
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Touchstone and Hengkang is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Touchstone International Medic and Hengkang Medical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengkang Medical and Touchstone International 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 Touchstone International Medical 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 Touchstone International i.e., Touchstone International and Hengkang Medical go up and down completely randomly.
Pair Corralation between Touchstone International and Hengkang Medical
Assuming the 90 days trading horizon Touchstone International Medical is expected to generate 0.56 times more return on investment than Hengkang Medical. However, Touchstone International Medical is 1.77 times less risky than Hengkang Medical. It trades about 0.0 of its potential returns per unit of risk. Hengkang Medical Group is currently generating about -0.01 per unit of risk. If you would invest 1,932 in Touchstone International Medical on August 28, 2024 and sell it today you would lose (15.00) from holding Touchstone International Medical or give up 0.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Touchstone International Medic vs. Hengkang Medical Group
Performance |
| Timeline |
| Touchstone International |
| Hengkang Medical |
Touchstone International and Hengkang Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Touchstone International and Hengkang Medical
The main advantage of trading using opposite Touchstone International and Hengkang Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Touchstone International 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.| Touchstone International vs. Bank of China | Touchstone International vs. Kweichow Moutai Co | Touchstone International vs. PetroChina Co Ltd | Touchstone International vs. Bank of Communications |
| 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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