Correlation Between Humanwell Healthcare and Industrial Bank
Specify exactly 2 symbols:
By analyzing existing cross correlation between Humanwell Healthcare Group and Industrial Bank Co, you can compare the effects of market volatilities on Humanwell Healthcare and Industrial Bank 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 Industrial Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humanwell Healthcare and Industrial Bank.
Diversification Opportunities for Humanwell Healthcare and Industrial Bank
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Humanwell and Industrial is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Humanwell Healthcare Group and Industrial Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial Bank 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 Industrial Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial Bank has no effect on the direction of Humanwell Healthcare i.e., Humanwell Healthcare and Industrial Bank go up and down completely randomly.
Pair Corralation between Humanwell Healthcare and Industrial Bank
Assuming the 90 days trading horizon Humanwell Healthcare Group is expected to generate 1.73 times more return on investment than Industrial Bank. However, Humanwell Healthcare is 1.73 times more volatile than Industrial Bank Co. It trades about 0.15 of its potential returns per unit of risk. Industrial Bank Co is currently generating about 0.03 per unit of risk. If you would invest 2,117 in Humanwell Healthcare Group on September 4, 2024 and sell it today you would earn a total of 153.00 from holding Humanwell Healthcare Group or generate 7.23% 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. Industrial Bank Co
Performance |
| Timeline |
| Humanwell Healthcare |
| Industrial Bank |
Humanwell Healthcare and Industrial Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humanwell Healthcare and Industrial Bank
The main advantage of trading using opposite Humanwell Healthcare and Industrial Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humanwell Healthcare position performs unexpectedly, Industrial Bank 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 Industrial Bank will offset losses from the drop in Industrial Bank's long position.| Humanwell Healthcare vs. Industrial Bank Co | Humanwell Healthcare vs. Zijin Mining Group | Humanwell Healthcare vs. Jiangxi Naipu Mining | Humanwell Healthcare vs. Guocheng Mining Co |
| Industrial Bank vs. Guangzhou Jointas Chemical | Industrial Bank vs. Eastern Communications Co | Industrial Bank vs. Longxing Chemical Stock | Industrial Bank vs. Sportsoul Co Ltd |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |