Correlation Between Meihua International and G Medical
Can any of the company-specific risk be diversified away by investing in both Meihua International and G Medical 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 Meihua International and G Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Meihua International Medical and G Medical Innovations, you can compare the effects of market volatilities on Meihua International and G 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 Meihua International with a short position of G Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meihua International and G Medical.
Diversification Opportunities for Meihua International and G Medical
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Meihua and GMVD is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Meihua International Medical and G Medical Innovations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G Medical Innovations and Meihua International 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 Meihua International Medical are associated (or correlated) with G Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G Medical Innovations has no effect on the direction of Meihua International i.e., Meihua International and G Medical go up and down completely randomly.
Pair Corralation between Meihua International and G Medical
If you would invest (100.00) in G Medical Innovations on December 2, 2024 and sell it today you would earn a total of 100.00 from holding G Medical Innovations or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Meihua International Medical vs. G Medical Innovations
Performance |
| Timeline |
| Meihua International |
| G Medical Innovations |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Meihua International and G Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meihua International and G Medical
The main advantage of trading using opposite Meihua International and G Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meihua International position performs unexpectedly, G 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 G Medical will offset losses from the drop in G Medical's long position.| Meihua International vs. Daxor | ||
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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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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