Correlation Between Anhui Gujing and Humanwell Healthcare
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By analyzing existing cross correlation between Anhui Gujing Distillery and Humanwell Healthcare Group, you can compare the effects of market volatilities on Anhui Gujing and Humanwell Healthcare 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 Anhui Gujing with a short position of Humanwell Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Gujing and Humanwell Healthcare.
Diversification Opportunities for Anhui Gujing and Humanwell Healthcare
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Anhui and Humanwell is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Gujing Distillery and Humanwell Healthcare Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humanwell Healthcare and Anhui Gujing 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 Anhui Gujing Distillery are associated (or correlated) with Humanwell Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Humanwell Healthcare has no effect on the direction of Anhui Gujing i.e., Anhui Gujing and Humanwell Healthcare go up and down completely randomly.
Pair Corralation between Anhui Gujing and Humanwell Healthcare
Assuming the 90 days trading horizon Anhui Gujing Distillery is expected to under-perform the Humanwell Healthcare. But the stock apears to be less risky and, when comparing its historical volatility, Anhui Gujing Distillery is 1.0 times less risky than Humanwell Healthcare. The stock trades about -0.03 of its potential returns per unit of risk. The Humanwell Healthcare Group is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 2,717 in Humanwell Healthcare Group on October 16, 2024 and sell it today you would lose (624.00) from holding Humanwell Healthcare Group or give up 22.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Gujing Distillery vs. Humanwell Healthcare Group
Performance |
| Timeline |
| Anhui Gujing Distillery |
| Humanwell Healthcare |
Anhui Gujing and Humanwell Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Gujing and Humanwell Healthcare
The main advantage of trading using opposite Anhui Gujing and Humanwell Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Gujing position performs unexpectedly, Humanwell Healthcare 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 Humanwell Healthcare will offset losses from the drop in Humanwell Healthcare's long position.| Anhui Gujing vs. Guangdong Wens Foodstuff | Anhui Gujing vs. Anhui Xinhua Media | Anhui Gujing vs. Gan Yuan Foods | Anhui Gujing vs. Xiwang Foodstuffs Co |
| Humanwell Healthcare vs. Heilongjiang Publishing Media | Humanwell Healthcare vs. Anhui Gujing Distillery | Humanwell Healthcare vs. Beijing Enlight Media | Humanwell Healthcare vs. Duzhe Publishing Media |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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