Correlation Between Humanwell Healthcare and China Life
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By analyzing existing cross correlation between Humanwell Healthcare Group and China Life Insurance, you can compare the effects of market volatilities on Humanwell Healthcare and China Life 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 China Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humanwell Healthcare and China Life.
Diversification Opportunities for Humanwell Healthcare and China Life
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Humanwell and China is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Humanwell Healthcare Group and China Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Life Insurance 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 China Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Life Insurance has no effect on the direction of Humanwell Healthcare i.e., Humanwell Healthcare and China Life go up and down completely randomly.
Pair Corralation between Humanwell Healthcare and China Life
Assuming the 90 days trading horizon Humanwell Healthcare Group is expected to generate 0.71 times more return on investment than China Life. However, Humanwell Healthcare Group is 1.41 times less risky than China Life. It trades about 0.2 of its potential returns per unit of risk. China Life Insurance is currently generating about 0.02 per unit of risk. If you would invest 2,117 in Humanwell Healthcare Group on September 5, 2024 and sell it today you would earn a total of 211.00 from holding Humanwell Healthcare Group or generate 9.97% 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. China Life Insurance
Performance |
| Timeline |
| Humanwell Healthcare |
| China Life Insurance |
Humanwell Healthcare and China Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humanwell Healthcare and China Life
The main advantage of trading using opposite Humanwell Healthcare and China Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humanwell Healthcare position performs unexpectedly, China Life 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 China Life will offset losses from the drop in China Life's long position.| Humanwell Healthcare vs. Industrial and Commercial | Humanwell Healthcare vs. Agricultural Bank of | Humanwell Healthcare vs. China Construction Bank | Humanwell Healthcare vs. Bank of China |
| China Life vs. Fujian Oriental Silver | China Life vs. Humanwell Healthcare Group | China Life vs. Chenzhou Jingui Silver | China Life vs. Jiangxi Naipu 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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