Correlation Between Heren Health and China Petroleum
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By analyzing existing cross correlation between Heren Health Co and China Petroleum Chemical, you can compare the effects of market volatilities on Heren Health and China Petroleum 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 China Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heren Health and China Petroleum.
Diversification Opportunities for Heren Health and China Petroleum
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Heren and China is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Heren Health Co and China Petroleum Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Petroleum Chemical 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 China Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Petroleum Chemical has no effect on the direction of Heren Health i.e., Heren Health and China Petroleum go up and down completely randomly.
Pair Corralation between Heren Health and China Petroleum
Assuming the 90 days trading horizon Heren Health Co is expected to generate 3.57 times more return on investment than China Petroleum. However, Heren Health is 3.57 times more volatile than China Petroleum Chemical. It trades about 0.07 of its potential returns per unit of risk. China Petroleum Chemical is currently generating about -0.44 per unit of risk. If you would invest 1,360 in Heren Health Co on November 5, 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Heren Health Co vs. China Petroleum Chemical
Performance |
| Timeline |
| Heren Health |
| China Petroleum Chemical |
Heren Health and China Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heren Health and China Petroleum
The main advantage of trading using opposite Heren Health and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heren Health position performs unexpectedly, China Petroleum 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 China Petroleum will offset losses from the drop in China Petroleum's long position.| Heren Health vs. Grandblue Environment Co | Heren Health vs. Fujian Nanwang Environment | Heren Health vs. Sinosteel Engineering and | Heren Health vs. Tongxing Environmental Protection |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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