Correlation Between Meihua International and Wearable Health
Can any of the company-specific risk be diversified away by investing in both Meihua International and Wearable Health 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 Wearable Health 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 Wearable Health Solutions, you can compare the effects of market volatilities on Meihua International and Wearable Health 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 Wearable Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meihua International and Wearable Health.
Diversification Opportunities for Meihua International and Wearable Health
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Meihua and Wearable is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Meihua International Medical and Wearable Health Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wearable Health Solutions 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 Wearable Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wearable Health Solutions has no effect on the direction of Meihua International i.e., Meihua International and Wearable Health go up and down completely randomly.
Pair Corralation between Meihua International and Wearable Health
If you would invest 0.01 in Wearable Health Solutions on August 25, 2024 and sell it today you would earn a total of 0.00 from holding Wearable Health Solutions or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meihua International Medical vs. Wearable Health Solutions
Performance |
| Timeline |
| Meihua International |
| Wearable Health Solutions |
Meihua International and Wearable Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meihua International and Wearable Health
The main advantage of trading using opposite Meihua International and Wearable Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meihua International position performs unexpectedly, Wearable Health 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 Wearable Health will offset losses from the drop in Wearable Health's long position.| Meihua International vs. Heartbeam | Meihua International vs. EUDA Health Holdings | Meihua International vs. Nutex Health | Meihua International vs. Healthcare Triangle |
| Wearable Health vs. CeCors Inc | Wearable Health vs. GlucoTrack | Wearable Health vs. Sharps Technology | Wearable Health vs. Utah Medical Products |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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