Correlation Between Daxor and Meihua International
Can any of the company-specific risk be diversified away by investing in both Daxor and Meihua International 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 Daxor and Meihua International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daxor and Meihua International Medical, you can compare the effects of market volatilities on Daxor and Meihua International 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 Daxor with a short position of Meihua International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daxor and Meihua International.
Diversification Opportunities for Daxor and Meihua International
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Daxor and Meihua is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Daxor and Meihua International Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meihua International and Daxor 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 Daxor are associated (or correlated) with Meihua International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meihua International has no effect on the direction of Daxor i.e., Daxor and Meihua International go up and down completely randomly.
Pair Corralation between Daxor and Meihua International
Considering the 90-day investment horizon Daxor is expected to generate 1.09 times less return on investment than Meihua International. But when comparing it to its historical volatility, Daxor is 2.07 times less risky than Meihua International. It trades about 0.04 of its potential returns per unit of risk. Meihua International Medical is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 64.00 in Meihua International Medical on August 31, 2024 and sell it today you would lose (11.00) from holding Meihua International Medical or give up 17.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.06% |
| Values | Daily Returns |
Daxor vs. Meihua International Medical
Performance |
| Timeline |
| Daxor |
| Meihua International |
Daxor and Meihua International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daxor and Meihua International
The main advantage of trading using opposite Daxor and Meihua International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daxor position performs unexpectedly, Meihua International 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 Meihua International will offset losses from the drop in Meihua International's long position.| Daxor vs. InfuSystems Holdings | Daxor vs. Meihua International Medical | Daxor vs. Repro Med Systems | Daxor vs. LeMaitre Vascular |
| Meihua International vs. Daxor | Meihua International vs. InfuSystems Holdings | Meihua International vs. Repro Med Systems | Meihua International vs. LeMaitre Vascular |
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.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |