Correlation Between China Health and Concord Acquisition
Can any of the company-specific risk be diversified away by investing in both China Health and Concord Acquisition 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 China Health and Concord Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Health Management and Concord Acquisition Corp, you can compare the effects of market volatilities on China Health and Concord Acquisition 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 China Health with a short position of Concord Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Health and Concord Acquisition.
Diversification Opportunities for China Health and Concord Acquisition
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Concord is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding China Health Management and Concord Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concord Acquisition Corp and China 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 China Health Management are associated (or correlated) with Concord Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concord Acquisition Corp has no effect on the direction of China Health i.e., China Health and Concord Acquisition go up and down completely randomly.
Pair Corralation between China Health and Concord Acquisition
If you would invest 0.34 in China Health Management on September 4, 2024 and sell it today you would earn a total of 0.06 from holding China Health Management or generate 17.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.41% |
| Values | Daily Returns |
China Health Management vs. Concord Acquisition Corp
Performance |
| Timeline |
| China Health Management |
| Concord Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
China Health and Concord Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Health and Concord Acquisition
The main advantage of trading using opposite China Health and Concord Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Health position performs unexpectedly, Concord Acquisition 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 Concord Acquisition will offset losses from the drop in Concord Acquisition's long position.| China Health vs. Absolute Health and | China Health vs. Embrace Change Acquisition | China Health vs. Supurva Healthcare Group | China Health vs. TransAKT |
| Concord Acquisition vs. Thunder Bridge Capital | Concord Acquisition vs. Welsbach Technology Metals | Concord Acquisition vs. Hudson Acquisition I | Concord Acquisition vs. Marblegate Acquisition Corp |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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