Correlation Between Humanwell Healthcare and Shenzhen Shenbao
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By analyzing existing cross correlation between Humanwell Healthcare Group and Shenzhen Shenbao Industrial, you can compare the effects of market volatilities on Humanwell Healthcare and Shenzhen Shenbao 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 Humanwell Healthcare with a short position of Shenzhen Shenbao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humanwell Healthcare and Shenzhen Shenbao.
Diversification Opportunities for Humanwell Healthcare and Shenzhen Shenbao
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Humanwell and Shenzhen is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Humanwell Healthcare Group and Shenzhen Shenbao Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Shenbao Ind and Humanwell Healthcare 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 Humanwell Healthcare Group are associated (or correlated) with Shenzhen Shenbao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Shenbao Ind has no effect on the direction of Humanwell Healthcare i.e., Humanwell Healthcare and Shenzhen Shenbao go up and down completely randomly.
Pair Corralation between Humanwell Healthcare and Shenzhen Shenbao
Assuming the 90 days trading horizon Humanwell Healthcare Group is expected to generate 1.59 times more return on investment than Shenzhen Shenbao. However, Humanwell Healthcare is 1.59 times more volatile than Shenzhen Shenbao Industrial. It trades about 0.23 of its potential returns per unit of risk. Shenzhen Shenbao Industrial is currently generating about 0.13 per unit of risk. If you would invest 2,228 in Humanwell Healthcare Group on September 13, 2024 and sell it today you would earn a total of 294.00 from holding Humanwell Healthcare Group or generate 13.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Humanwell Healthcare Group vs. Shenzhen Shenbao Industrial
Performance |
| Timeline |
| Humanwell Healthcare |
| Shenzhen Shenbao Ind |
Humanwell Healthcare and Shenzhen Shenbao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humanwell Healthcare and Shenzhen Shenbao
The main advantage of trading using opposite Humanwell Healthcare and Shenzhen Shenbao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humanwell Healthcare position performs unexpectedly, Shenzhen Shenbao 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 Shenzhen Shenbao will offset losses from the drop in Shenzhen Shenbao's long position.| Humanwell Healthcare vs. BeiGene | Humanwell Healthcare vs. Kweichow Moutai Co | Humanwell Healthcare vs. Beijing Roborock Technology | Humanwell Healthcare vs. G bits Network Technology |
| Shenzhen Shenbao vs. Sportsoul Co Ltd | Shenzhen Shenbao vs. Shuhua Sports Co | Shenzhen Shenbao vs. Heilongjiang Publishing Media | Shenzhen Shenbao vs. Mango Excellent Media |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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