Correlation Between Shandong Publishing and Meinian Onehealth

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Shandong Publishing 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 Shandong Publishing and Meinian Onehealth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shandong Publishing Media and Meinian Onehealth Healthcare, you can compare the effects of market volatilities on Shandong Publishing 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 Shandong Publishing with a short position of Meinian Onehealth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Publishing and Meinian Onehealth.

Diversification Opportunities for Shandong Publishing and Meinian Onehealth

-0.46
  Correlation Coefficient

Very good diversification

The 3 months correlation between Shandong and Meinian is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Publishing Media and Meinian Onehealth Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meinian Onehealth and Shandong Publishing 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 Shandong Publishing Media 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 Shandong Publishing i.e., Shandong Publishing and Meinian Onehealth go up and down completely randomly.

Pair Corralation between Shandong Publishing and Meinian Onehealth

Assuming the 90 days trading horizon Shandong Publishing Media is expected to under-perform the Meinian Onehealth. But the stock apears to be less risky and, when comparing its historical volatility, Shandong Publishing Media is 1.12 times less risky than Meinian Onehealth. The stock trades about -0.05 of its potential returns per unit of risk. The Meinian Onehealth Healthcare is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  453.00  in Meinian Onehealth Healthcare on October 8, 2024 and sell it today you would lose (14.00) from holding Meinian Onehealth Healthcare or give up 3.09% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Shandong Publishing Media  vs.  Meinian Onehealth Healthcare

 Performance 
       Timeline  
Shandong Publishing Media 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Shandong Publishing Media has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.
Meinian Onehealth 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
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.

Shandong Publishing and Meinian Onehealth Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Shandong Publishing and Meinian Onehealth

The main advantage of trading using opposite Shandong Publishing and Meinian Onehealth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Publishing 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 Shandong Publishing Media 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.
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.

Other Complementary Tools

Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency