Correlation Between Chison Medical and Henan Lantian
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By analyzing existing cross correlation between Chison Medical Technologies and Henan Lantian Gas, you can compare the effects of market volatilities on Chison Medical and Henan Lantian 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 Lantian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chison Medical and Henan Lantian.
Diversification Opportunities for Chison Medical and Henan Lantian
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Chison and Henan is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Chison Medical Technologies and Henan Lantian Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henan Lantian Gas 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 Lantian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henan Lantian Gas has no effect on the direction of Chison Medical i.e., Chison Medical and Henan Lantian go up and down completely randomly.
Pair Corralation between Chison Medical and Henan Lantian
Assuming the 90 days trading horizon Chison Medical Technologies is expected to generate 1.92 times more return on investment than Henan Lantian. However, Chison Medical is 1.92 times more volatile than Henan Lantian Gas. It trades about 0.21 of its potential returns per unit of risk. Henan Lantian Gas is currently generating about -0.12 per unit of risk. If you would invest 2,409 in Chison Medical Technologies on November 3, 2024 and sell it today you would earn a total of 201.00 from holding Chison Medical Technologies or generate 8.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chison Medical Technologies vs. Henan Lantian Gas
Performance |
| Timeline |
| Chison Medical Techn |
| Henan Lantian Gas |
Chison Medical and Henan Lantian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chison Medical and Henan Lantian
The main advantage of trading using opposite Chison Medical and Henan Lantian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chison Medical position performs unexpectedly, Henan Lantian 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 Lantian will offset losses from the drop in Henan Lantian's long position.| Chison Medical vs. PetroChina Co Ltd | Chison Medical vs. China Railway Construction | Chison Medical vs. China Mobile Limited | Chison Medical vs. Industrial and Commercial |
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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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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