Correlation Between Onyx Healthcare and Chaheng Precision
Can any of the company-specific risk be diversified away by investing in both Onyx Healthcare and Chaheng Precision 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 Onyx Healthcare and Chaheng Precision into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Onyx Healthcare and Chaheng Precision Co, you can compare the effects of market volatilities on Onyx Healthcare and Chaheng Precision 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 Onyx Healthcare with a short position of Chaheng Precision. Check out your portfolio center. Please also check ongoing floating volatility patterns of Onyx Healthcare and Chaheng Precision.
Diversification Opportunities for Onyx Healthcare and Chaheng Precision
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Onyx and Chaheng is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Onyx Healthcare and Chaheng Precision Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chaheng Precision and Onyx Healthcare 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 Onyx Healthcare are associated (or correlated) with Chaheng Precision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chaheng Precision has no effect on the direction of Onyx Healthcare i.e., Onyx Healthcare and Chaheng Precision go up and down completely randomly.
Pair Corralation between Onyx Healthcare and Chaheng Precision
Assuming the 90 days trading horizon Onyx Healthcare is expected to generate 1.87 times more return on investment than Chaheng Precision. However, Onyx Healthcare is 1.87 times more volatile than Chaheng Precision Co. It trades about 0.0 of its potential returns per unit of risk. Chaheng Precision Co is currently generating about -0.19 per unit of risk. If you would invest 15,350 in Onyx Healthcare on October 10, 2024 and sell it today you would lose (50.00) from holding Onyx Healthcare or give up 0.33% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Onyx Healthcare vs. Chaheng Precision Co
Performance |
Timeline |
Onyx Healthcare |
Chaheng Precision |
Onyx Healthcare and Chaheng Precision Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Onyx Healthcare and Chaheng Precision
The main advantage of trading using opposite Onyx Healthcare and Chaheng Precision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Onyx Healthcare position performs unexpectedly, Chaheng Precision 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 Chaheng Precision will offset losses from the drop in Chaheng Precision's long position.Onyx Healthcare vs. Kao Fong Machinery | Onyx Healthcare vs. Highwealth Construction Corp | Onyx Healthcare vs. ADLINK Technology | Onyx Healthcare vs. Dawushan Farm Tech |
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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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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