Correlation Between Onyx Healthcare and Tacheng Real

Can any of the company-specific risk be diversified away by investing in both Onyx Healthcare and Tacheng Real 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 Tacheng Real into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Onyx Healthcare and Tacheng Real Estate, you can compare the effects of market volatilities on Onyx Healthcare and Tacheng Real 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 Tacheng Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Onyx Healthcare and Tacheng Real.

Diversification Opportunities for Onyx Healthcare and Tacheng Real

0.0

Correlation Coefficient

Onyx Healthcare  Tacheng Real

Pay attention - limited upside

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

Pair Corralation between Onyx Healthcare and Tacheng Real

If you would invest  0.00  in Tacheng Real Estate on October 1, 2024 and sell it today you would earn a total of  0.00  from holding Tacheng Real Estate or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Onyx Healthcare  vs.  Tacheng Real Estate

Onyx Healthcare

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Onyx Healthcare has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Tacheng Real Estate

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Tacheng Real Estate are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Tacheng Real may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Onyx Healthcare and Tacheng Real

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

The idea behind Onyx Healthcare and Tacheng Real Estate 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.