Correlation Between Humanwell Healthcare and Shenzhen MTC
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By analyzing existing cross correlation between Humanwell Healthcare Group and Shenzhen MTC Co, you can compare the effects of market volatilities on Humanwell Healthcare and Shenzhen MTC 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 MTC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humanwell Healthcare and Shenzhen MTC.
Diversification Opportunities for Humanwell Healthcare and Shenzhen MTC
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Humanwell and Shenzhen is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Humanwell Healthcare Group and Shenzhen MTC Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen MTC 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 MTC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen MTC has no effect on the direction of Humanwell Healthcare i.e., Humanwell Healthcare and Shenzhen MTC go up and down completely randomly.
Pair Corralation between Humanwell Healthcare and Shenzhen MTC
Assuming the 90 days trading horizon Humanwell Healthcare Group is expected to generate 0.92 times more return on investment than Shenzhen MTC. However, Humanwell Healthcare Group is 1.09 times less risky than Shenzhen MTC. It trades about 0.08 of its potential returns per unit of risk. Shenzhen MTC Co is currently generating about -0.02 per unit of risk. If you would invest 2,179 in Humanwell Healthcare Group on August 30, 2024 and sell it today you would earn a total of 74.00 from holding Humanwell Healthcare Group or generate 3.4% 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. Shenzhen MTC Co
Performance |
| Timeline |
| Humanwell Healthcare |
| Shenzhen MTC |
Humanwell Healthcare and Shenzhen MTC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humanwell Healthcare and Shenzhen MTC
The main advantage of trading using opposite Humanwell Healthcare and Shenzhen MTC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humanwell Healthcare position performs unexpectedly, Shenzhen MTC 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 MTC will offset losses from the drop in Shenzhen MTC's long position.| Humanwell Healthcare vs. Agricultural Bank of | Humanwell Healthcare vs. Industrial and Commercial | Humanwell Healthcare vs. Bank of China | Humanwell Healthcare vs. PetroChina Co Ltd |
| Shenzhen MTC vs. Silkroad Visual Technology | Shenzhen MTC vs. Anhui Transport Consulting | Shenzhen MTC vs. Guangdong Jingyi Metal | Shenzhen MTC vs. RoadMain T 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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