Correlation Between Hengkang Medical and China Marine
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hengkang Medical Group and China Marine Information, you can compare the effects of market volatilities on Hengkang Medical and China Marine 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 Hengkang Medical with a short position of China Marine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengkang Medical and China Marine.
Diversification Opportunities for Hengkang Medical and China Marine
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hengkang and China is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Hengkang Medical Group and China Marine Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Marine Information and Hengkang Medical 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 Hengkang Medical Group are associated (or correlated) with China Marine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Marine Information has no effect on the direction of Hengkang Medical i.e., Hengkang Medical and China Marine go up and down completely randomly.
Pair Corralation between Hengkang Medical and China Marine
Assuming the 90 days trading horizon Hengkang Medical Group is expected to under-perform the China Marine. In addition to that, Hengkang Medical is 1.07 times more volatile than China Marine Information. It trades about -0.02 of its total potential returns per unit of risk. China Marine Information is currently generating about 0.03 per unit of volatility. If you would invest 2,341 in China Marine Information on September 26, 2024 and sell it today you would earn a total of 573.00 from holding China Marine Information or generate 24.48% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Hengkang Medical Group vs. China Marine Information
Performance |
Timeline |
Hengkang Medical |
China Marine Information |
Hengkang Medical and China Marine Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hengkang Medical and China Marine
The main advantage of trading using opposite Hengkang Medical and China Marine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengkang Medical position performs unexpectedly, China Marine 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 China Marine will offset losses from the drop in China Marine's long position.Hengkang Medical vs. Agricultural Bank of | Hengkang Medical vs. Industrial and Commercial | Hengkang Medical vs. Bank of China | Hengkang Medical vs. China Construction Bank |
China Marine vs. Tianjin Pengling Rubber | China Marine vs. Guangzhou Tinci Materials | China Marine vs. Ningxia Building Materials | China Marine vs. Jiugui Liquor Co |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories |