Correlation Between China Pacific and MyHealthChecked Plc

Can any of the company-specific risk be diversified away by investing in both China Pacific and MyHealthChecked Plc 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 China Pacific and MyHealthChecked Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between China Pacific Insurance and MyHealthChecked Plc, you can compare the effects of market volatilities on China Pacific and MyHealthChecked Plc 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 China Pacific with a short position of MyHealthChecked Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Pacific and MyHealthChecked Plc.

Diversification Opportunities for China Pacific and MyHealthChecked Plc

0.68

Correlation Coefficient

China Pacific  MyHealthChecked Plc

Poor diversification

The 3 months correlation between China and MyHealthChecked is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding China Pacific Insurance and MyHealthChecked Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MyHealthChecked Plc and China Pacific 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 China Pacific Insurance are associated (or correlated) with MyHealthChecked Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MyHealthChecked Plc has no effect on the direction of China Pacific i.e., China Pacific and MyHealthChecked Plc go up and down completely randomly.

Pair Corralation between China Pacific and MyHealthChecked Plc

Assuming the 90 days trading horizon China Pacific Insurance is expected to generate 0.09 times more return on investment than MyHealthChecked Plc. However, China Pacific Insurance is 11.43 times less risky than MyHealthChecked Plc. It trades about -0.13 of its potential returns per unit of risk. MyHealthChecked Plc is currently generating about -0.03 per unit of risk. If you would invest  2,499  in China Pacific Insurance on April 23, 2025 and sell it today you would lose (79.00) from holding China Pacific Insurance or give up 3.16% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

China Pacific Insurance  vs.  MyHealthChecked Plc

China Pacific Insurance

Risk-Adjusted Performance

Very Weak

Over the last 90 days China Pacific Insurance has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, China Pacific is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

MyHealthChecked Plc

Risk-Adjusted Performance

Very Weak

Over the last 90 days MyHealthChecked Plc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with China Pacific and MyHealthChecked Plc

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

The idea behind China Pacific Insurance and MyHealthChecked Plc 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.