Correlation Between Humanwell Healthcare and Nanxing Furniture
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By analyzing existing cross correlation between Humanwell Healthcare Group and Nanxing Furniture Machinery, you can compare the effects of market volatilities on Humanwell Healthcare and Nanxing Furniture 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 Nanxing Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humanwell Healthcare and Nanxing Furniture.
Diversification Opportunities for Humanwell Healthcare and Nanxing Furniture
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Humanwell and Nanxing is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Humanwell Healthcare Group and Nanxing Furniture Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanxing Furniture 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 Nanxing Furniture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanxing Furniture has no effect on the direction of Humanwell Healthcare i.e., Humanwell Healthcare and Nanxing Furniture go up and down completely randomly.
Pair Corralation between Humanwell Healthcare and Nanxing Furniture
Assuming the 90 days trading horizon Humanwell Healthcare is expected to generate 1.82 times less return on investment than Nanxing Furniture. But when comparing it to its historical volatility, Humanwell Healthcare Group is 1.68 times less risky than Nanxing Furniture. It trades about 0.14 of its potential returns per unit of risk. Nanxing Furniture Machinery is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,263 in Nanxing Furniture Machinery on August 28, 2024 and sell it today you would earn a total of 322.00 from holding Nanxing Furniture Machinery or generate 25.49% 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. Nanxing Furniture Machinery
Performance |
| Timeline |
| Humanwell Healthcare |
| Nanxing Furniture |
Humanwell Healthcare and Nanxing Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humanwell Healthcare and Nanxing Furniture
The main advantage of trading using opposite Humanwell Healthcare and Nanxing Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humanwell Healthcare position performs unexpectedly, Nanxing Furniture 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 Nanxing Furniture will offset losses from the drop in Nanxing Furniture's long position.| Humanwell Healthcare vs. Qtone Education Group | Humanwell Healthcare vs. Beijing Kaiwen Education | Humanwell Healthcare vs. Xinhua Winshare Publishing | Humanwell Healthcare vs. China Publishing Media |
| Nanxing Furniture vs. Biwin Storage Technology | Nanxing Furniture vs. PetroChina Co Ltd | Nanxing Furniture vs. Industrial and Commercial | Nanxing Furniture vs. China Construction Bank |
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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