Correlation Between Changchun BCHT and Meinian Onehealth
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By analyzing existing cross correlation between Changchun BCHT Biotechnology and Meinian Onehealth Healthcare, you can compare the effects of market volatilities on Changchun BCHT 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 Changchun BCHT with a short position of Meinian Onehealth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun BCHT and Meinian Onehealth.
Diversification Opportunities for Changchun BCHT and Meinian Onehealth
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Changchun and Meinian is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Changchun BCHT Biotechnology and Meinian Onehealth Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meinian Onehealth and Changchun BCHT 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 Changchun BCHT Biotechnology 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 Changchun BCHT i.e., Changchun BCHT and Meinian Onehealth go up and down completely randomly.
Pair Corralation between Changchun BCHT and Meinian Onehealth
Assuming the 90 days trading horizon Changchun BCHT is expected to generate 1.28 times less return on investment than Meinian Onehealth. In addition to that, Changchun BCHT is 1.05 times more volatile than Meinian Onehealth Healthcare. It trades about 0.08 of its total potential returns per unit of risk. Meinian Onehealth Healthcare is currently generating about 0.1 per unit of volatility. If you would invest 469.00 in Meinian Onehealth Healthcare on September 2, 2024 and sell it today you would earn a total of 23.00 from holding Meinian Onehealth Healthcare or generate 4.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun BCHT Biotechnology vs. Meinian Onehealth Healthcare
Performance |
| Timeline |
| Changchun BCHT Biote |
| Meinian Onehealth |
Changchun BCHT and Meinian Onehealth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun BCHT and Meinian Onehealth
The main advantage of trading using opposite Changchun BCHT and Meinian Onehealth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun BCHT 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.| Changchun BCHT vs. China Petroleum Chemical | Changchun BCHT vs. PetroChina Co Ltd | Changchun BCHT vs. China State Construction | Changchun BCHT vs. China Railway Group |
| Meinian Onehealth vs. Shenzhen MYS Environmental | Meinian Onehealth vs. AVIC Fund Management | Meinian Onehealth vs. Shenzhen Bingchuan Network | Meinian Onehealth vs. Penghua Shenzhen Energy |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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