Correlation Between Wenzhou Kangning and SAFEROADS HLDGS

Can any of the company-specific risk be diversified away by investing in both Wenzhou Kangning and SAFEROADS HLDGS 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 Wenzhou Kangning and SAFEROADS HLDGS into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Wenzhou Kangning Hospital and SAFEROADS HLDGS, you can compare the effects of market volatilities on Wenzhou Kangning and SAFEROADS HLDGS 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 Wenzhou Kangning with a short position of SAFEROADS HLDGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wenzhou Kangning and SAFEROADS HLDGS.

Diversification Opportunities for Wenzhou Kangning and SAFEROADS HLDGS

0.0

Correlation Coefficient

Wenzhou Kangning  SAFEROADS HLDGS

Pay attention - limited upside

The 3 months correlation between Wenzhou and SAFEROADS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Wenzhou Kangning Hospital and SAFEROADS HLDGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAFEROADS HLDGS and Wenzhou Kangning 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 Wenzhou Kangning Hospital are associated (or correlated) with SAFEROADS HLDGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAFEROADS HLDGS has no effect on the direction of Wenzhou Kangning i.e., Wenzhou Kangning and SAFEROADS HLDGS go up and down completely randomly.

Pair Corralation between Wenzhou Kangning and SAFEROADS HLDGS

If you would invest  13.00  in SAFEROADS HLDGS on December 24, 2024 and sell it today you would earn a total of  0.00  from holding SAFEROADS HLDGS or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

Wenzhou Kangning Hospital  vs.  SAFEROADS HLDGS

Wenzhou Kangning Hospital

Risk-Adjusted Performance

Very Weak

Over the last 90 days Wenzhou Kangning Hospital has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

SAFEROADS HLDGS

Risk-Adjusted Performance

Very Weak

Over the last 90 days SAFEROADS HLDGS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, SAFEROADS HLDGS is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Wenzhou Kangning and SAFEROADS HLDGS

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

The idea behind Wenzhou Kangning Hospital and SAFEROADS HLDGS 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.

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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.