Correlation Between Humanwell Healthcare and Anhui Huaren
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By analyzing existing cross correlation between Humanwell Healthcare Group and Anhui Huaren Health, you can compare the effects of market volatilities on Humanwell Healthcare and Anhui Huaren 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 Anhui Huaren. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humanwell Healthcare and Anhui Huaren.
Diversification Opportunities for Humanwell Healthcare and Anhui Huaren
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Humanwell and Anhui is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Humanwell Healthcare Group and Anhui Huaren Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Huaren Health 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 Anhui Huaren. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Huaren Health has no effect on the direction of Humanwell Healthcare i.e., Humanwell Healthcare and Anhui Huaren go up and down completely randomly.
Pair Corralation between Humanwell Healthcare and Anhui Huaren
Assuming the 90 days trading horizon Humanwell Healthcare Group is expected to generate 0.68 times more return on investment than Anhui Huaren. However, Humanwell Healthcare Group is 1.47 times less risky than Anhui Huaren. It trades about 0.06 of its potential returns per unit of risk. Anhui Huaren Health is currently generating about -0.02 per unit of risk. If you would invest 2,164 in Humanwell Healthcare Group on August 28, 2024 and sell it today you would earn a total of 50.00 from holding Humanwell Healthcare Group or generate 2.31% 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. Anhui Huaren Health
Performance |
| Timeline |
| Humanwell Healthcare |
| Anhui Huaren Health |
Humanwell Healthcare and Anhui Huaren Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humanwell Healthcare and Anhui Huaren
The main advantage of trading using opposite Humanwell Healthcare and Anhui Huaren positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humanwell Healthcare position performs unexpectedly, Anhui Huaren 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 Anhui Huaren will offset losses from the drop in Anhui Huaren'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 |
| Anhui Huaren vs. Ming Yang Smart | Anhui Huaren vs. 159681 | Anhui Huaren vs. 159005 | Anhui Huaren vs. Loctek Ergonomic Technology |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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