Correlation Between Hangzhou Gaoxin and Humanwell Healthcare
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By analyzing existing cross correlation between Hangzhou Gaoxin Rubber and Humanwell Healthcare Group, you can compare the effects of market volatilities on Hangzhou Gaoxin 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 Hangzhou Gaoxin with a short position of Humanwell Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Gaoxin and Humanwell Healthcare.
Diversification Opportunities for Hangzhou Gaoxin and Humanwell Healthcare
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hangzhou and Humanwell is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Gaoxin Rubber and Humanwell Healthcare Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humanwell Healthcare and Hangzhou Gaoxin 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 Hangzhou Gaoxin Rubber 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 Hangzhou Gaoxin i.e., Hangzhou Gaoxin and Humanwell Healthcare go up and down completely randomly.
Pair Corralation between Hangzhou Gaoxin and Humanwell Healthcare
Assuming the 90 days trading horizon Hangzhou Gaoxin Rubber is expected to generate 1.16 times more return on investment than Humanwell Healthcare. However, Hangzhou Gaoxin is 1.16 times more volatile than Humanwell Healthcare Group. It trades about 0.06 of its potential returns per unit of risk. Humanwell Healthcare Group is currently generating about 0.07 per unit of risk. If you would invest 1,050 in Hangzhou Gaoxin Rubber on September 1, 2024 and sell it today you would earn a total of 32.00 from holding Hangzhou Gaoxin Rubber or generate 3.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hangzhou Gaoxin Rubber vs. Humanwell Healthcare Group
Performance |
| Timeline |
| Hangzhou Gaoxin Rubber |
| Humanwell Healthcare |
Hangzhou Gaoxin and Humanwell Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Gaoxin and Humanwell Healthcare
The main advantage of trading using opposite Hangzhou Gaoxin and Humanwell Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Gaoxin 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.| Hangzhou Gaoxin vs. Shanghai Yanpu Metal | Hangzhou Gaoxin vs. Ningxia Younglight Chemicals | Hangzhou Gaoxin vs. Dymatic Chemicals | Hangzhou Gaoxin vs. CITIC Metal Co |
| Humanwell Healthcare vs. China Petroleum Chemical | Humanwell Healthcare vs. PetroChina Co Ltd | Humanwell Healthcare vs. China State Construction | Humanwell Healthcare vs. China Railway Group |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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