Correlation Between Humanwell Healthcare and Haima Automobile
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By analyzing existing cross correlation between Humanwell Healthcare Group and Haima Automobile Group, you can compare the effects of market volatilities on Humanwell Healthcare and Haima Automobile 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 Haima Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humanwell Healthcare and Haima Automobile.
Diversification Opportunities for Humanwell Healthcare and Haima Automobile
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Humanwell and Haima is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Humanwell Healthcare Group and Haima Automobile Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haima Automobile 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 Haima Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haima Automobile has no effect on the direction of Humanwell Healthcare i.e., Humanwell Healthcare and Haima Automobile go up and down completely randomly.
Pair Corralation between Humanwell Healthcare and Haima Automobile
Assuming the 90 days trading horizon Humanwell Healthcare Group is expected to generate 0.47 times more return on investment than Haima Automobile. However, Humanwell Healthcare Group is 2.13 times less risky than Haima Automobile. It trades about 0.2 of its potential returns per unit of risk. Haima Automobile Group is currently generating about -0.02 per unit of risk. If you would invest 2,117 in Humanwell Healthcare Group on September 5, 2024 and sell it today you would earn a total of 211.00 from holding Humanwell Healthcare Group or generate 9.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Humanwell Healthcare Group vs. Haima Automobile Group
Performance |
| Timeline |
| Humanwell Healthcare |
| Haima Automobile |
Humanwell Healthcare and Haima Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humanwell Healthcare and Haima Automobile
The main advantage of trading using opposite Humanwell Healthcare and Haima Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humanwell Healthcare position performs unexpectedly, Haima Automobile 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 Haima Automobile will offset losses from the drop in Haima Automobile's long position.| Humanwell Healthcare vs. Industrial and Commercial | Humanwell Healthcare vs. Agricultural Bank of | Humanwell Healthcare vs. China Construction Bank | Humanwell Healthcare vs. Bank of China |
| Haima Automobile vs. Humanwell Healthcare Group | Haima Automobile vs. Tsingtao Brewery Co | Haima Automobile vs. Dymatic Chemicals | Haima Automobile vs. Sunny Loan Top |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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