Correlation Between Heren Health and China Eastern
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By analyzing existing cross correlation between Heren Health Co and China Eastern Airlines, you can compare the effects of market volatilities on Heren Health and China Eastern 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 Eastern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heren Health and China Eastern.
Diversification Opportunities for Heren Health and China Eastern
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Heren and China is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Heren Health Co and China Eastern Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Eastern Airlines 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 Eastern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Eastern Airlines has no effect on the direction of Heren Health i.e., Heren Health and China Eastern go up and down completely randomly.
Pair Corralation between Heren Health and China Eastern
Assuming the 90 days trading horizon Heren Health Co is expected to generate 2.58 times more return on investment than China Eastern. However, Heren Health is 2.58 times more volatile than China Eastern Airlines. It trades about 0.01 of its potential returns per unit of risk. China Eastern Airlines is currently generating about -0.04 per unit of risk. If you would invest 1,534 in Heren Health Co on September 5, 2024 and sell it today you would lose (104.00) from holding Heren Health Co or give up 6.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Heren Health Co vs. China Eastern Airlines
Performance |
| Timeline |
| Heren Health |
| China Eastern Airlines |
Heren Health and China Eastern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heren Health and China Eastern
The main advantage of trading using opposite Heren Health and China Eastern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heren Health position performs unexpectedly, China Eastern 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 Eastern will offset losses from the drop in China Eastern's long position.| Heren Health vs. Fujian Longzhou Transportation | Heren Health vs. Easyhome New Retail | Heren Health vs. Dhc Software Co | Heren Health vs. Guizhou BroadcastingTV Info |
| China Eastern vs. Shandong Sinoglory Health | China Eastern vs. PKU HealthCare Corp | China Eastern vs. Heren Health Co | China Eastern vs. Meinian Onehealth Healthcare |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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