Correlation Between Shanghai V and Hengkang Medical
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By analyzing existing cross correlation between Shanghai V Test Semiconductor and Hengkang Medical Group, you can compare the effects of market volatilities on Shanghai V 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 Shanghai V with a short position of Hengkang Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai V and Hengkang Medical.
Diversification Opportunities for Shanghai V and Hengkang Medical
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shanghai and Hengkang is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai V Test Semiconductor and Hengkang Medical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengkang Medical and Shanghai V 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 Shanghai V Test Semiconductor 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 Shanghai V i.e., Shanghai V and Hengkang Medical go up and down completely randomly.
Pair Corralation between Shanghai V and Hengkang Medical
Assuming the 90 days trading horizon Shanghai V Test Semiconductor is expected to generate 1.14 times more return on investment than Hengkang Medical. However, Shanghai V is 1.14 times more volatile than Hengkang Medical Group. It trades about 0.13 of its potential returns per unit of risk. Hengkang Medical Group is currently generating about 0.1 per unit of risk. If you would invest 3,871 in Shanghai V Test Semiconductor on October 26, 2024 and sell it today you would earn a total of 3,090 from holding Shanghai V Test Semiconductor or generate 79.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai V Test Semiconductor vs. Hengkang Medical Group
Performance |
| Timeline |
| Shanghai V Test |
| Hengkang Medical |
Shanghai V and Hengkang Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai V and Hengkang Medical
The main advantage of trading using opposite Shanghai V and Hengkang Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai V 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.| Shanghai V vs. Hubei Geoway Investment | Shanghai V vs. XinJiang GuoTong Pipeline | Shanghai V vs. Offshore Oil Engineering | Shanghai V vs. Jiangsu Yueda Investment |
| Hengkang Medical vs. Ming Yang Smart | Hengkang Medical vs. 159681 | Hengkang Medical vs. 159005 | Hengkang Medical vs. Loctek Ergonomic Technology |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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