Correlation Between Heren Health and Xinhua Winshare
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By analyzing existing cross correlation between Heren Health Co and Xinhua Winshare Publishing, you can compare the effects of market volatilities on Heren Health and Xinhua Winshare 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 Xinhua Winshare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heren Health and Xinhua Winshare.
Diversification Opportunities for Heren Health and Xinhua Winshare
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Heren and Xinhua is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Heren Health Co and Xinhua Winshare Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinhua Winshare Publ 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 Xinhua Winshare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinhua Winshare Publ has no effect on the direction of Heren Health i.e., Heren Health and Xinhua Winshare go up and down completely randomly.
Pair Corralation between Heren Health and Xinhua Winshare
Assuming the 90 days trading horizon Heren Health Co is expected to generate 2.48 times more return on investment than Xinhua Winshare. However, Heren Health is 2.48 times more volatile than Xinhua Winshare Publishing. It trades about 0.07 of its potential returns per unit of risk. Xinhua Winshare Publishing is currently generating about -0.08 per unit of risk. If you would invest 1,360 in Heren Health Co on November 7, 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. Xinhua Winshare Publishing
Performance |
| Timeline |
| Heren Health |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Xinhua Winshare Publ |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
Heren Health and Xinhua Winshare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heren Health and Xinhua Winshare
The main advantage of trading using opposite Heren Health and Xinhua Winshare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heren Health position performs unexpectedly, Xinhua Winshare 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 Xinhua Winshare will offset losses from the drop in Xinhua Winshare's long position.The idea behind Heren Health Co and Xinhua Winshare Publishing pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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