Correlation Between Humanwell Healthcare and China International
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By analyzing existing cross correlation between Humanwell Healthcare Group and China International Capital, you can compare the effects of market volatilities on Humanwell Healthcare and China International 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 International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humanwell Healthcare and China International.
Diversification Opportunities for Humanwell Healthcare and China International
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Humanwell and China is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Humanwell Healthcare Group and China International Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China International 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 International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China International has no effect on the direction of Humanwell Healthcare i.e., Humanwell Healthcare and China International go up and down completely randomly.
Pair Corralation between Humanwell Healthcare and China International
Assuming the 90 days trading horizon Humanwell Healthcare Group is expected to under-perform the China International. But the stock apears to be less risky and, when comparing its historical volatility, Humanwell Healthcare Group is 1.07 times less risky than China International. The stock trades about -0.02 of its potential returns per unit of risk. The China International Capital is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 3,977 in China International Capital on September 2, 2024 and sell it today you would lose (421.00) from holding China International Capital or give up 10.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Humanwell Healthcare Group vs. China International Capital
Performance |
| Timeline |
| Humanwell Healthcare |
| China International |
Humanwell Healthcare and China International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humanwell Healthcare and China International
The main advantage of trading using opposite Humanwell Healthcare and China International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humanwell Healthcare position performs unexpectedly, China International 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 International will offset losses from the drop in China International's long position.| Humanwell Healthcare vs. China Petroleum Chemical | Humanwell Healthcare vs. PetroChina Co Ltd | Humanwell Healthcare vs. China State Construction | Humanwell Healthcare vs. China Railway Group |
| China International vs. UE Furniture Co | China International vs. CICC Fund Management | China International vs. Hunan Mendale Hometextile | China International vs. China Asset Management |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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