Correlation Between Der International and Humanwell Healthcare
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By analyzing existing cross correlation between Der International Home and Humanwell Healthcare Group, you can compare the effects of market volatilities on Der International 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 Der International with a short position of Humanwell Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Der International and Humanwell Healthcare.
Diversification Opportunities for Der International and Humanwell Healthcare
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Der and Humanwell is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Der International Home and Humanwell Healthcare Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humanwell Healthcare and Der International 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 Der International Home 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 Der International i.e., Der International and Humanwell Healthcare go up and down completely randomly.
Pair Corralation between Der International and Humanwell Healthcare
Assuming the 90 days trading horizon Der International is expected to generate 1.19 times less return on investment than Humanwell Healthcare. In addition to that, Der International is 1.43 times more volatile than Humanwell Healthcare Group. It trades about 0.02 of its total potential returns per unit of risk. Humanwell Healthcare Group is currently generating about 0.03 per unit of volatility. If you would invest 2,017 in Humanwell Healthcare Group on August 28, 2024 and sell it today you would earn a total of 197.00 from holding Humanwell Healthcare Group or generate 9.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Der International Home vs. Humanwell Healthcare Group
Performance |
| Timeline |
| Der International Home |
| Humanwell Healthcare |
Der International and Humanwell Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Der International and Humanwell Healthcare
The main advantage of trading using opposite Der International and Humanwell Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Der International 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.| Der International vs. Agricultural Bank of | Der International vs. Industrial and Commercial | Der International vs. Bank of China | Der International vs. China Construction Bank |
| Humanwell Healthcare vs. Ningxia Younglight Chemicals | Humanwell Healthcare vs. Bomin Electronics Co | Humanwell Healthcare vs. China World Trade | Humanwell Healthcare vs. Do Fluoride Chemicals 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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