Correlation Between Zotye Automobile and Humanwell Healthcare
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By analyzing existing cross correlation between Zotye Automobile Co and Humanwell Healthcare Group, you can compare the effects of market volatilities on Zotye Automobile 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 Zotye Automobile with a short position of Humanwell Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zotye Automobile and Humanwell Healthcare.
Diversification Opportunities for Zotye Automobile and Humanwell Healthcare
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zotye and Humanwell is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Zotye Automobile Co and Humanwell Healthcare Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humanwell Healthcare and Zotye Automobile 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 Zotye Automobile Co 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 Zotye Automobile i.e., Zotye Automobile and Humanwell Healthcare go up and down completely randomly.
Pair Corralation between Zotye Automobile and Humanwell Healthcare
Assuming the 90 days trading horizon Zotye Automobile is expected to generate 3.49 times less return on investment than Humanwell Healthcare. In addition to that, Zotye Automobile is 1.67 times more volatile than Humanwell Healthcare Group. It trades about 0.03 of its total potential returns per unit of risk. Humanwell Healthcare Group is currently generating about 0.2 per unit of volatility. If you would invest 2,185 in Humanwell Healthcare Group on September 12, 2024 and sell it today you would earn a total of 227.00 from holding Humanwell Healthcare Group or generate 10.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zotye Automobile Co vs. Humanwell Healthcare Group
Performance |
| Timeline |
| Zotye Automobile |
| Humanwell Healthcare |
Zotye Automobile and Humanwell Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zotye Automobile and Humanwell Healthcare
The main advantage of trading using opposite Zotye Automobile and Humanwell Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zotye Automobile 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.| Zotye Automobile vs. Lutian Machinery Co | Zotye Automobile vs. PetroChina Co Ltd | Zotye Automobile vs. Bank of China | Zotye Automobile vs. Gansu Jiu Steel |
| Humanwell Healthcare vs. Cultural Investment Holdings | Humanwell Healthcare vs. Gome Telecom Equipment | Humanwell Healthcare vs. Holitech Technology Co | Humanwell Healthcare vs. Zotye Automobile Co |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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