Correlation Between NIGHTINGALE HEALTH and Beijing Tong
Can any of the company-specific risk be diversified away by investing in both NIGHTINGALE HEALTH and Beijing Tong at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining NIGHTINGALE HEALTH and Beijing Tong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NIGHTINGALE HEALTH EO and Beijing Tong Ren, you can compare the effects of market volatilities on NIGHTINGALE HEALTH and Beijing Tong 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 NIGHTINGALE HEALTH with a short position of Beijing Tong. Check out your portfolio center. Please also check ongoing floating volatility patterns of NIGHTINGALE HEALTH and Beijing Tong.
Diversification Opportunities for NIGHTINGALE HEALTH and Beijing Tong
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NIGHTINGALE and Beijing is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding NIGHTINGALE HEALTH EO and Beijing Tong Ren in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Tong Ren and NIGHTINGALE HEALTH 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 NIGHTINGALE HEALTH EO are associated (or correlated) with Beijing Tong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Tong Ren has no effect on the direction of NIGHTINGALE HEALTH i.e., NIGHTINGALE HEALTH and Beijing Tong go up and down completely randomly.
Pair Corralation between NIGHTINGALE HEALTH and Beijing Tong
Assuming the 90 days horizon NIGHTINGALE HEALTH EO is expected to under-perform the Beijing Tong. In addition to that, NIGHTINGALE HEALTH is 1.69 times more volatile than Beijing Tong Ren. It trades about -0.03 of its total potential returns per unit of risk. Beijing Tong Ren is currently generating about 0.0 per unit of volatility. If you would invest 97.00 in Beijing Tong Ren on October 26, 2024 and sell it today you would lose (1.00) from holding Beijing Tong Ren or give up 1.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NIGHTINGALE HEALTH EO vs. Beijing Tong Ren
Performance |
| Timeline |
| NIGHTINGALE HEALTH |
| Beijing Tong Ren |
NIGHTINGALE HEALTH and Beijing Tong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NIGHTINGALE HEALTH and Beijing Tong
The main advantage of trading using opposite NIGHTINGALE HEALTH and Beijing Tong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NIGHTINGALE HEALTH position performs unexpectedly, Beijing Tong 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 Beijing Tong will offset losses from the drop in Beijing Tong's long position.| NIGHTINGALE HEALTH vs. Veeva Systems | NIGHTINGALE HEALTH vs. Teladoc | NIGHTINGALE HEALTH vs. Evolent Health | NIGHTINGALE HEALTH vs. CompuGroup Medical SE |
| Beijing Tong vs. Universal Health Realty | Beijing Tong vs. Planet Fitness | Beijing Tong vs. NIGHTINGALE HEALTH EO | Beijing Tong vs. NEWELL RUBBERMAID |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |