Correlation Between Xiangyu Medical and Hengkang Medical
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By analyzing existing cross correlation between Xiangyu Medical Co and Hengkang Medical Group, you can compare the effects of market volatilities on Xiangyu Medical 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 Xiangyu Medical with a short position of Hengkang Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyu Medical and Hengkang Medical.
Diversification Opportunities for Xiangyu Medical and Hengkang Medical
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xiangyu and Hengkang is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyu Medical Co and Hengkang Medical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengkang Medical and Xiangyu 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 Xiangyu Medical Co 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 Xiangyu Medical i.e., Xiangyu Medical and Hengkang Medical go up and down completely randomly.
Pair Corralation between Xiangyu Medical and Hengkang Medical
Assuming the 90 days trading horizon Xiangyu Medical is expected to generate 1.39 times less return on investment than Hengkang Medical. In addition to that, Xiangyu Medical is 1.11 times more volatile than Hengkang Medical Group. It trades about 0.13 of its total potential returns per unit of risk. Hengkang Medical Group is currently generating about 0.2 per unit of volatility. If you would invest 173.00 in Hengkang Medical Group on September 2, 2024 and sell it today you would earn a total of 97.00 from holding Hengkang Medical Group or generate 56.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiangyu Medical Co vs. Hengkang Medical Group
Performance |
| Timeline |
| Xiangyu Medical |
| Hengkang Medical |
Xiangyu Medical and Hengkang Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangyu Medical and Hengkang Medical
The main advantage of trading using opposite Xiangyu Medical and Hengkang Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyu Medical 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.| Xiangyu Medical vs. Nanjing Putian Telecommunications | Xiangyu Medical vs. Shenzhen Hifuture Electric | Xiangyu Medical vs. Tianjin Realty Development | Xiangyu Medical vs. Shenyang Huitian Thermal |
| Hengkang Medical vs. Sichuan Teway Food | Hengkang Medical vs. Dhc Software Co | Hengkang Medical vs. Guilin Seamild Foods | Hengkang Medical vs. V V Food |
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 Stocks Directory module to find actively traded stocks across global markets.
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