Correlation Between Humanwell Healthcare and Guangdong Tianhe
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By analyzing existing cross correlation between Humanwell Healthcare Group and Guangdong Tianhe Agricultural, you can compare the effects of market volatilities on Humanwell Healthcare and Guangdong Tianhe 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 Guangdong Tianhe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humanwell Healthcare and Guangdong Tianhe.
Diversification Opportunities for Humanwell Healthcare and Guangdong Tianhe
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Humanwell and Guangdong is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Humanwell Healthcare Group and Guangdong Tianhe Agricultural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Tianhe Agr 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 Guangdong Tianhe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Tianhe Agr has no effect on the direction of Humanwell Healthcare i.e., Humanwell Healthcare and Guangdong Tianhe go up and down completely randomly.
Pair Corralation between Humanwell Healthcare and Guangdong Tianhe
Assuming the 90 days trading horizon Humanwell Healthcare Group is expected to generate 0.93 times more return on investment than Guangdong Tianhe. However, Humanwell Healthcare Group is 1.08 times less risky than Guangdong Tianhe. It trades about 0.12 of its potential returns per unit of risk. Guangdong Tianhe Agricultural is currently generating about 0.04 per unit of risk. If you would invest 1,717 in Humanwell Healthcare Group on September 26, 2024 and sell it today you would earn a total of 656.00 from holding Humanwell Healthcare Group or generate 38.21% 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. Guangdong Tianhe Agricultural
Performance |
| Timeline |
| Humanwell Healthcare |
| Guangdong Tianhe Agr |
Humanwell Healthcare and Guangdong Tianhe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humanwell Healthcare and Guangdong Tianhe
The main advantage of trading using opposite Humanwell Healthcare and Guangdong Tianhe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humanwell Healthcare position performs unexpectedly, Guangdong Tianhe 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 Guangdong Tianhe will offset losses from the drop in Guangdong Tianhe's long position.| Humanwell Healthcare vs. Agricultural Bank of | Humanwell Healthcare vs. Industrial and Commercial | Humanwell Healthcare vs. Bank of China | Humanwell Healthcare vs. China Construction Bank |
| Guangdong Tianhe vs. Zijin Mining Group | Guangdong Tianhe vs. Wanhua Chemical Group | Guangdong Tianhe vs. Baoshan Iron Steel | Guangdong Tianhe vs. Shandong Gold Mining |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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