Correlation Between 159681 and Humanwell Healthcare
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By analyzing existing cross correlation between 159681 and Humanwell Healthcare Group, you can compare the effects of market volatilities on 159681 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 159681 with a short position of Humanwell Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159681 and Humanwell Healthcare.
Diversification Opportunities for 159681 and Humanwell Healthcare
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 159681 and Humanwell is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding 159681 and Humanwell Healthcare Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humanwell Healthcare and 159681 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 159681 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 159681 i.e., 159681 and Humanwell Healthcare go up and down completely randomly.
Pair Corralation between 159681 and Humanwell Healthcare
Assuming the 90 days trading horizon 159681 is expected to generate 0.71 times more return on investment than Humanwell Healthcare. However, 159681 is 1.4 times less risky than Humanwell Healthcare. It trades about 0.08 of its potential returns per unit of risk. Humanwell Healthcare Group is currently generating about 0.05 per unit of risk. If you would invest 89.00 in 159681 on November 5, 2024 and sell it today you would earn a total of 2.00 from holding 159681 or generate 2.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
159681 vs. Humanwell Healthcare Group
Performance |
| Timeline |
| 159681 |
| Humanwell Healthcare |
159681 and Humanwell Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159681 and Humanwell Healthcare
The main advantage of trading using opposite 159681 and Humanwell Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159681 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.The idea behind 159681 and Humanwell Healthcare Group 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.| Humanwell Healthcare vs. Hainan Mining Co | Humanwell Healthcare vs. GigaDevice SemiconductorBeiji | Humanwell Healthcare vs. Zhengzhou Coal Mining | Humanwell Healthcare vs. Shenzhen Shenbao Industrial |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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