Correlation Between Humanwell Healthcare and Beijing Originwater
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By analyzing existing cross correlation between Humanwell Healthcare Group and Beijing Originwater Technology, you can compare the effects of market volatilities on Humanwell Healthcare and Beijing Originwater 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 Beijing Originwater. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humanwell Healthcare and Beijing Originwater.
Diversification Opportunities for Humanwell Healthcare and Beijing Originwater
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Humanwell and Beijing is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Humanwell Healthcare Group and Beijing Originwater Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Originwater 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 Beijing Originwater. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Originwater has no effect on the direction of Humanwell Healthcare i.e., Humanwell Healthcare and Beijing Originwater go up and down completely randomly.
Pair Corralation between Humanwell Healthcare and Beijing Originwater
Assuming the 90 days trading horizon Humanwell Healthcare Group is expected to generate 0.99 times more return on investment than Beijing Originwater. However, Humanwell Healthcare Group is 1.01 times less risky than Beijing Originwater. It trades about 0.2 of its potential returns per unit of risk. Beijing Originwater Technology is currently generating about -0.13 per unit of risk. If you would invest 2,185 in Humanwell Healthcare Group on September 12, 2024 and sell it today you would earn a total of 227.00 from holding Humanwell Healthcare Group or generate 10.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Humanwell Healthcare Group vs. Beijing Originwater Technology
Performance |
| Timeline |
| Humanwell Healthcare |
| Beijing Originwater |
Humanwell Healthcare and Beijing Originwater Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humanwell Healthcare and Beijing Originwater
The main advantage of trading using opposite Humanwell Healthcare and Beijing Originwater positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humanwell Healthcare position performs unexpectedly, Beijing Originwater 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 Beijing Originwater will offset losses from the drop in Beijing Originwater's long position.| Humanwell Healthcare vs. Cultural Investment Holdings | Humanwell Healthcare vs. Gome Telecom Equipment | Humanwell Healthcare vs. Holitech Technology Co | Humanwell Healthcare vs. Zotye Automobile 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 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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