Correlation Between By Health and Greattown Holdings
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By analyzing existing cross correlation between By health and Greattown Holdings Ltd, you can compare the effects of market volatilities on By Health and Greattown Holdings 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 By Health with a short position of Greattown Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of By Health and Greattown Holdings.
Diversification Opportunities for By Health and Greattown Holdings
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 300146 and Greattown is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding By health and Greattown Holdings Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greattown Holdings and By Health 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 By health are associated (or correlated) with Greattown Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greattown Holdings has no effect on the direction of By Health i.e., By Health and Greattown Holdings go up and down completely randomly.
Pair Corralation between By Health and Greattown Holdings
Assuming the 90 days trading horizon By health is expected to under-perform the Greattown Holdings. But the stock apears to be less risky and, when comparing its historical volatility, By health is 1.43 times less risky than Greattown Holdings. The stock trades about -0.04 of its potential returns per unit of risk. The Greattown Holdings Ltd is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 305.00 in Greattown Holdings Ltd on September 4, 2024 and sell it today you would earn a total of 91.00 from holding Greattown Holdings Ltd or generate 29.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
By health vs. Greattown Holdings Ltd
Performance |
| Timeline |
| By health |
| Greattown Holdings |
By Health and Greattown Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with By Health and Greattown Holdings
The main advantage of trading using opposite By Health and Greattown Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if By Health position performs unexpectedly, Greattown Holdings 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 Greattown Holdings will offset losses from the drop in Greattown Holdings' long position.| By Health vs. Biwin Storage Technology | By Health vs. PetroChina Co Ltd | By Health vs. Industrial and Commercial | By Health vs. China Construction Bank |
| Greattown Holdings vs. Nanjing Putian Telecommunications | Greattown Holdings vs. Tianjin Realty Development | Greattown Holdings vs. Shenyang Huitian Thermal | Greattown Holdings vs. Shenzhen Changfang Light |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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