Correlation Between Qingdao NovelBeam and Hengkang Medical
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By analyzing existing cross correlation between Qingdao NovelBeam Technology and Hengkang Medical Group, you can compare the effects of market volatilities on Qingdao NovelBeam 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 Qingdao NovelBeam with a short position of Hengkang Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao NovelBeam and Hengkang Medical.
Diversification Opportunities for Qingdao NovelBeam and Hengkang Medical
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Qingdao and Hengkang is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao NovelBeam Technology and Hengkang Medical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengkang Medical and Qingdao NovelBeam 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 Qingdao NovelBeam Technology 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 Qingdao NovelBeam i.e., Qingdao NovelBeam and Hengkang Medical go up and down completely randomly.
Pair Corralation between Qingdao NovelBeam and Hengkang Medical
Assuming the 90 days trading horizon Qingdao NovelBeam Technology is expected to under-perform the Hengkang Medical. But the stock apears to be less risky and, when comparing its historical volatility, Qingdao NovelBeam Technology is 1.64 times less risky than Hengkang Medical. The stock trades about -0.07 of its potential returns per unit of risk. The Hengkang Medical Group is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 257.00 in Hengkang Medical Group on September 1, 2024 and sell it today you would earn a total of 13.00 from holding Hengkang Medical Group or generate 5.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Qingdao NovelBeam Technology vs. Hengkang Medical Group
Performance |
| Timeline |
| Qingdao NovelBeam |
| Hengkang Medical |
Qingdao NovelBeam and Hengkang Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao NovelBeam and Hengkang Medical
The main advantage of trading using opposite Qingdao NovelBeam and Hengkang Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao NovelBeam 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.| Qingdao NovelBeam vs. Penyao Environmental Protection | Qingdao NovelBeam vs. Impulse Qingdao Health | Qingdao NovelBeam vs. Heren Health Co | Qingdao NovelBeam vs. Meinian Onehealth Healthcare |
| Hengkang Medical vs. Xinjiang Baodi Mining | Hengkang Medical vs. Zhejiang Qianjiang Motorcycle | Hengkang Medical vs. Hainan Mining Co | Hengkang Medical vs. Guocheng Mining Co |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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