Correlation Between Heren Health and Wuliangye Yibin
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By analyzing existing cross correlation between Heren Health Co and Wuliangye Yibin Co, you can compare the effects of market volatilities on Heren Health and Wuliangye Yibin 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 Heren Health with a short position of Wuliangye Yibin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heren Health and Wuliangye Yibin.
Diversification Opportunities for Heren Health and Wuliangye Yibin
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Heren and Wuliangye is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Heren Health Co and Wuliangye Yibin Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuliangye Yibin and Heren 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 Heren Health Co are associated (or correlated) with Wuliangye Yibin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuliangye Yibin has no effect on the direction of Heren Health i.e., Heren Health and Wuliangye Yibin go up and down completely randomly.
Pair Corralation between Heren Health and Wuliangye Yibin
Assuming the 90 days trading horizon Heren Health Co is expected to generate 3.0 times more return on investment than Wuliangye Yibin. However, Heren Health is 3.0 times more volatile than Wuliangye Yibin Co. It trades about 0.07 of its potential returns per unit of risk. Wuliangye Yibin Co is currently generating about -0.03 per unit of risk. If you would invest 1,360 in Heren Health Co on November 6, 2024 and sell it today you would earn a total of 48.00 from holding Heren Health Co or generate 3.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Heren Health Co vs. Wuliangye Yibin Co
Performance |
| Timeline |
| Heren Health |
| Wuliangye Yibin |
Heren Health and Wuliangye Yibin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heren Health and Wuliangye Yibin
The main advantage of trading using opposite Heren Health and Wuliangye Yibin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heren Health position performs unexpectedly, Wuliangye Yibin 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 Wuliangye Yibin will offset losses from the drop in Wuliangye Yibin's long position.| Heren Health vs. Easyhome New Retail | Heren Health vs. Yili Chuanning Biotechnology | Heren Health vs. Shanghai Rightongene Biotechnology | Heren Health vs. Jinhe Biotechnology Co |
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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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