Correlation Between Zhongshan Public and Humanwell Healthcare
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By analyzing existing cross correlation between Zhongshan Public Utilities and Humanwell Healthcare Group, you can compare the effects of market volatilities on Zhongshan Public 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 Zhongshan Public with a short position of Humanwell Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongshan Public and Humanwell Healthcare.
Diversification Opportunities for Zhongshan Public and Humanwell Healthcare
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhongshan and Humanwell is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Zhongshan Public Utilities and Humanwell Healthcare Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humanwell Healthcare and Zhongshan Public 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 Zhongshan Public Utilities 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 Zhongshan Public i.e., Zhongshan Public and Humanwell Healthcare go up and down completely randomly.
Pair Corralation between Zhongshan Public and Humanwell Healthcare
Assuming the 90 days trading horizon Zhongshan Public Utilities is expected to generate 0.73 times more return on investment than Humanwell Healthcare. However, Zhongshan Public Utilities is 1.37 times less risky than Humanwell Healthcare. It trades about -0.2 of its potential returns per unit of risk. Humanwell Healthcare Group is currently generating about -0.29 per unit of risk. If you would invest 924.00 in Zhongshan Public Utilities on October 11, 2024 and sell it today you would lose (59.00) from holding Zhongshan Public Utilities or give up 6.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongshan Public Utilities vs. Humanwell Healthcare Group
Performance |
| Timeline |
| Zhongshan Public Uti |
| Humanwell Healthcare |
Zhongshan Public and Humanwell Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongshan Public and Humanwell Healthcare
The main advantage of trading using opposite Zhongshan Public and Humanwell Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongshan Public 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.| Zhongshan Public vs. PetroChina Co Ltd | Zhongshan Public vs. China Mobile Limited | Zhongshan Public vs. CNOOC Limited | Zhongshan Public vs. Ping An Insurance |
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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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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