Correlation Between Humanwell Healthcare and Shanghai Rongtai
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By analyzing existing cross correlation between Humanwell Healthcare Group and Shanghai Rongtai Health, you can compare the effects of market volatilities on Humanwell Healthcare and Shanghai Rongtai 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 Shanghai Rongtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humanwell Healthcare and Shanghai Rongtai.
Diversification Opportunities for Humanwell Healthcare and Shanghai Rongtai
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Humanwell and Shanghai is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Humanwell Healthcare Group and Shanghai Rongtai Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Rongtai 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 Shanghai Rongtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Rongtai Health has no effect on the direction of Humanwell Healthcare i.e., Humanwell Healthcare and Shanghai Rongtai go up and down completely randomly.
Pair Corralation between Humanwell Healthcare and Shanghai Rongtai
Assuming the 90 days trading horizon Humanwell Healthcare Group is expected to generate 0.83 times more return on investment than Shanghai Rongtai. However, Humanwell Healthcare Group is 1.2 times less risky than Shanghai Rongtai. It trades about 0.04 of its potential returns per unit of risk. Shanghai Rongtai Health is currently generating about -0.01 per unit of risk. If you would invest 1,871 in Humanwell Healthcare Group on November 1, 2024 and sell it today you would earn a total of 302.00 from holding Humanwell Healthcare Group or generate 16.14% 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. Shanghai Rongtai Health
Performance |
| Timeline |
| Humanwell Healthcare |
| Shanghai Rongtai Health |
Humanwell Healthcare and Shanghai Rongtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humanwell Healthcare and Shanghai Rongtai
The main advantage of trading using opposite Humanwell Healthcare and Shanghai Rongtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humanwell Healthcare position performs unexpectedly, Shanghai Rongtai 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 Shanghai Rongtai will offset losses from the drop in Shanghai Rongtai's long position.| Humanwell Healthcare vs. Ming Yang Smart | Humanwell Healthcare vs. 159681 | Humanwell Healthcare vs. 159005 | Humanwell Healthcare vs. Loctek Ergonomic Technology |
| Shanghai Rongtai vs. Liaoning Chengda Biotechnology | Shanghai Rongtai vs. Bloomage Biotechnology Corp | Shanghai Rongtai vs. Anhui Tongguan Copper | Shanghai Rongtai vs. Shenyang Huitian Thermal |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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