Correlation Between Winner Medical and HeNan Splendor
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By analyzing existing cross correlation between Winner Medical Co and HeNan Splendor Science, you can compare the effects of market volatilities on Winner Medical and HeNan Splendor 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 Winner Medical with a short position of HeNan Splendor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Winner Medical and HeNan Splendor.
Diversification Opportunities for Winner Medical and HeNan Splendor
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Winner and HeNan is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Winner Medical Co and HeNan Splendor Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HeNan Splendor Science and Winner Medical 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 Winner Medical Co are associated (or correlated) with HeNan Splendor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HeNan Splendor Science has no effect on the direction of Winner Medical i.e., Winner Medical and HeNan Splendor go up and down completely randomly.
Pair Corralation between Winner Medical and HeNan Splendor
Assuming the 90 days trading horizon Winner Medical Co is expected to generate 1.14 times more return on investment than HeNan Splendor. However, Winner Medical is 1.14 times more volatile than HeNan Splendor Science. It trades about 0.22 of its potential returns per unit of risk. HeNan Splendor Science is currently generating about 0.14 per unit of risk. If you would invest 2,497 in Winner Medical Co on September 24, 2024 and sell it today you would earn a total of 1,763 from holding Winner Medical Co or generate 70.6% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Winner Medical Co vs. HeNan Splendor Science
Performance |
Timeline |
Winner Medical |
HeNan Splendor Science |
Winner Medical and HeNan Splendor Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Winner Medical and HeNan Splendor
The main advantage of trading using opposite Winner Medical and HeNan Splendor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Winner Medical position performs unexpectedly, HeNan Splendor 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 HeNan Splendor will offset losses from the drop in HeNan Splendor's long position.Winner Medical vs. New China Life | Winner Medical vs. Ming Yang Smart | Winner Medical vs. 159681 | Winner Medical vs. 159005 |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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