Correlation Between Anshan Senyuan and Meinian Onehealth

Can any of the company-specific risk be diversified away by investing in both Anshan Senyuan and Meinian Onehealth 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 Anshan Senyuan and Meinian Onehealth into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Anshan Senyuan Road and Meinian Onehealth Healthcare, you can compare the effects of market volatilities on Anshan Senyuan and Meinian Onehealth 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 Anshan Senyuan with a short position of Meinian Onehealth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anshan Senyuan and Meinian Onehealth.

Diversification Opportunities for Anshan Senyuan and Meinian Onehealth

0.33

Correlation Coefficient

Anshan Senyuan  Meinian Onehealth

Weak diversification

The 3 months correlation between Anshan and Meinian is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Anshan Senyuan Road and Meinian Onehealth Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meinian Onehealth and Anshan Senyuan 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 Anshan Senyuan Road are associated (or correlated) with Meinian Onehealth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meinian Onehealth has no effect on the direction of Anshan Senyuan i.e., Anshan Senyuan and Meinian Onehealth go up and down completely randomly.

Pair Corralation between Anshan Senyuan and Meinian Onehealth

Assuming the 90 days trading horizon Anshan Senyuan Road is expected to under-perform the Meinian Onehealth. In addition to that, Anshan Senyuan is 1.37 times more volatile than Meinian Onehealth Healthcare. It trades about -0.22 of its total potential returns per unit of risk. Meinian Onehealth Healthcare is currently generating about 0.01 per unit of volatility. If you would invest  429.00  in Meinian Onehealth Healthcare on October 26, 2024 and sell it today you would lose (5.00) from holding Meinian Onehealth Healthcare or give up 1.17% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Anshan Senyuan Road  vs.  Meinian Onehealth Healthcare

Anshan Senyuan Road

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Anshan Senyuan Road has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Meinian Onehealth

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Meinian Onehealth Healthcare has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Meinian Onehealth is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Anshan Senyuan and Meinian Onehealth

The main advantage of trading using opposite Anshan Senyuan and Meinian Onehealth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anshan Senyuan position performs unexpectedly, Meinian Onehealth 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 Meinian Onehealth will offset losses from the drop in Meinian Onehealth's long position.

The idea behind Anshan Senyuan Road and Meinian Onehealth Healthcare pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.