Correlation Between Cathay Biotech and Meinian Onehealth
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By analyzing existing cross correlation between Cathay Biotech and Meinian Onehealth Healthcare, you can compare the effects of market volatilities on Cathay Biotech 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 Cathay Biotech with a short position of Meinian Onehealth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cathay Biotech and Meinian Onehealth.
Diversification Opportunities for Cathay Biotech and Meinian Onehealth
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cathay and Meinian is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Cathay Biotech and Meinian Onehealth Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meinian Onehealth and Cathay Biotech 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 Cathay Biotech 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 Cathay Biotech i.e., Cathay Biotech and Meinian Onehealth go up and down completely randomly.
Pair Corralation between Cathay Biotech and Meinian Onehealth
Assuming the 90 days trading horizon Cathay Biotech is expected to under-perform the Meinian Onehealth. But the stock apears to be less risky and, when comparing its historical volatility, Cathay Biotech is 1.24 times less risky than Meinian Onehealth. The stock trades about -0.25 of its potential returns per unit of risk. The Meinian Onehealth Healthcare is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 489.00 in Meinian Onehealth Healthcare on September 15, 2024 and sell it today you would earn a total of 38.00 from holding Meinian Onehealth Healthcare or generate 7.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cathay Biotech vs. Meinian Onehealth Healthcare
Performance |
| Timeline |
| Cathay Biotech |
| Meinian Onehealth |
Cathay Biotech and Meinian Onehealth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cathay Biotech and Meinian Onehealth
The main advantage of trading using opposite Cathay Biotech and Meinian Onehealth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cathay Biotech 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.| Cathay Biotech vs. Zijin Mining Group | Cathay Biotech vs. Wanhua Chemical Group | Cathay Biotech vs. Baoshan Iron Steel | Cathay Biotech vs. Shandong Gold Mining |
| Meinian Onehealth vs. Cofoe Medical Technology | Meinian Onehealth vs. Guangzhou Automobile Group | Meinian Onehealth vs. Songz Automobile Air | Meinian Onehealth vs. Xian International Medical |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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