Correlation Between Chison Medical and HeNan Splendor
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By analyzing existing cross correlation between Chison Medical Technologies and HeNan Splendor Science, you can compare the effects of market volatilities on Chison Medical and HeNan Splendor 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 Chison Medical with a short position of HeNan Splendor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chison Medical and HeNan Splendor.
Diversification Opportunities for Chison Medical and HeNan Splendor
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chison and HeNan is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Chison Medical Technologies and HeNan Splendor Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HeNan Splendor Science and Chison Medical 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 Chison Medical Technologies are associated (or correlated) with HeNan Splendor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HeNan Splendor Science has no effect on the direction of Chison Medical i.e., Chison Medical and HeNan Splendor go up and down completely randomly.
Pair Corralation between Chison Medical and HeNan Splendor
Assuming the 90 days trading horizon Chison Medical is expected to generate 1.84 times less return on investment than HeNan Splendor. But when comparing it to its historical volatility, Chison Medical Technologies is 2.02 times less risky than HeNan Splendor. It trades about 0.1 of its potential returns per unit of risk. HeNan Splendor Science is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 981.00 in HeNan Splendor Science on October 26, 2024 and sell it today you would earn a total of 56.00 from holding HeNan Splendor Science or generate 5.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chison Medical Technologies vs. HeNan Splendor Science
Performance |
| Timeline |
| Chison Medical Techn |
| HeNan Splendor Science |
Chison Medical and HeNan Splendor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chison Medical and HeNan Splendor
The main advantage of trading using opposite Chison Medical and HeNan Splendor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chison Medical position performs unexpectedly, HeNan Splendor 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 HeNan Splendor will offset losses from the drop in HeNan Splendor's long position.| Chison Medical vs. Agricultural Bank of | Chison Medical vs. Industrial and Commercial | Chison Medical vs. Bank of China | Chison Medical vs. China Construction Bank |
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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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