Correlation Between Humanwell Healthcare and Yangmei Chemical
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By analyzing existing cross correlation between Humanwell Healthcare Group and Yangmei Chemical Co, you can compare the effects of market volatilities on Humanwell Healthcare and Yangmei Chemical 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 Yangmei Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humanwell Healthcare and Yangmei Chemical.
Diversification Opportunities for Humanwell Healthcare and Yangmei Chemical
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Humanwell and Yangmei is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Humanwell Healthcare Group and Yangmei Chemical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yangmei Chemical 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 Yangmei Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yangmei Chemical has no effect on the direction of Humanwell Healthcare i.e., Humanwell Healthcare and Yangmei Chemical go up and down completely randomly.
Pair Corralation between Humanwell Healthcare and Yangmei Chemical
Assuming the 90 days trading horizon Humanwell Healthcare is expected to generate 4.16 times less return on investment than Yangmei Chemical. But when comparing it to its historical volatility, Humanwell Healthcare Group is 1.25 times less risky than Yangmei Chemical. It trades about 0.06 of its potential returns per unit of risk. Yangmei Chemical Co is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 155.00 in Yangmei Chemical Co on September 3, 2024 and sell it today you would earn a total of 83.00 from holding Yangmei Chemical Co or generate 53.55% 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. Yangmei Chemical Co
Performance |
| Timeline |
| Humanwell Healthcare |
| Yangmei Chemical |
Humanwell Healthcare and Yangmei Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humanwell Healthcare and Yangmei Chemical
The main advantage of trading using opposite Humanwell Healthcare and Yangmei Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humanwell Healthcare position performs unexpectedly, Yangmei Chemical 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 Yangmei Chemical will offset losses from the drop in Yangmei Chemical's long position.| Humanwell Healthcare vs. Yangmei Chemical Co | Humanwell Healthcare vs. Eastern Communications Co | Humanwell Healthcare vs. Xinjiang Zhongtai Chemical | Humanwell Healthcare vs. Wintao Communications Co |
| Yangmei Chemical vs. Zijin Mining Group | Yangmei Chemical vs. Wanhua Chemical Group | Yangmei Chemical vs. Baoshan Iron Steel | Yangmei Chemical vs. Rongsheng Petrochemical 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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