Correlation Between Beijing Enlight and Humanwell Healthcare
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By analyzing existing cross correlation between Beijing Enlight Media and Humanwell Healthcare Group, you can compare the effects of market volatilities on Beijing Enlight 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 Beijing Enlight with a short position of Humanwell Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Enlight and Humanwell Healthcare.
Diversification Opportunities for Beijing Enlight and Humanwell Healthcare
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Humanwell is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Enlight Media and Humanwell Healthcare Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humanwell Healthcare and Beijing Enlight 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 Beijing Enlight Media 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 Beijing Enlight i.e., Beijing Enlight and Humanwell Healthcare go up and down completely randomly.
Pair Corralation between Beijing Enlight and Humanwell Healthcare
Assuming the 90 days trading horizon Beijing Enlight Media is expected to generate 1.37 times more return on investment than Humanwell Healthcare. However, Beijing Enlight is 1.37 times more volatile than Humanwell Healthcare Group. It trades about 0.02 of its potential returns per unit of risk. Humanwell Healthcare Group is currently generating about -0.01 per unit of risk. If you would invest 833.00 in Beijing Enlight Media on October 16, 2024 and sell it today you would earn a total of 33.00 from holding Beijing Enlight Media or generate 3.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Enlight Media vs. Humanwell Healthcare Group
Performance |
| Timeline |
| Beijing Enlight Media |
| Humanwell Healthcare |
Beijing Enlight and Humanwell Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Enlight and Humanwell Healthcare
The main advantage of trading using opposite Beijing Enlight and Humanwell Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Enlight 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.| Beijing Enlight vs. Beijing Sanyuan Foods | Beijing Enlight vs. HaiXin Foods Co | Beijing Enlight vs. Shanghai Newtouch Software | Beijing Enlight vs. Guangdong Wens Foodstuff |
| Humanwell Healthcare vs. Heilongjiang Publishing Media | Humanwell Healthcare vs. Anhui Gujing Distillery | Humanwell Healthcare vs. Beijing Enlight Media | Humanwell Healthcare vs. Duzhe Publishing Media |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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