Correlation Between Jiangxi Naipu and Humanwell Healthcare
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By analyzing existing cross correlation between Jiangxi Naipu Mining and Humanwell Healthcare Group, you can compare the effects of market volatilities on Jiangxi Naipu 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 Jiangxi Naipu with a short position of Humanwell Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Naipu and Humanwell Healthcare.
Diversification Opportunities for Jiangxi Naipu and Humanwell Healthcare
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangxi and Humanwell is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Naipu Mining and Humanwell Healthcare Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humanwell Healthcare and Jiangxi Naipu 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 Jiangxi Naipu Mining 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 Jiangxi Naipu i.e., Jiangxi Naipu and Humanwell Healthcare go up and down completely randomly.
Pair Corralation between Jiangxi Naipu and Humanwell Healthcare
Assuming the 90 days trading horizon Jiangxi Naipu Mining is expected to under-perform the Humanwell Healthcare. But the stock apears to be less risky and, when comparing its historical volatility, Jiangxi Naipu Mining is 1.13 times less risky than Humanwell Healthcare. The stock trades about -0.02 of its potential returns per unit of risk. The Humanwell Healthcare Group is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 2,185 in Humanwell Healthcare Group on September 12, 2024 and sell it today you would earn a total of 227.00 from holding Humanwell Healthcare Group or generate 10.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Naipu Mining vs. Humanwell Healthcare Group
Performance |
| Timeline |
| Jiangxi Naipu Mining |
| Humanwell Healthcare |
Jiangxi Naipu and Humanwell Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Naipu and Humanwell Healthcare
The main advantage of trading using opposite Jiangxi Naipu and Humanwell Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Naipu 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.| Jiangxi Naipu vs. Agricultural Bank of | Jiangxi Naipu vs. Industrial and Commercial | Jiangxi Naipu vs. Bank of China | Jiangxi Naipu vs. PetroChina Co Ltd |
| Humanwell Healthcare vs. Cultural Investment Holdings | Humanwell Healthcare vs. Gome Telecom Equipment | Humanwell Healthcare vs. Holitech Technology Co | Humanwell Healthcare vs. Zotye Automobile Co |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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