Correlation Between Humanwell Healthcare and Zoy Home
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By analyzing existing cross correlation between Humanwell Healthcare Group and Zoy Home Furnishing, you can compare the effects of market volatilities on Humanwell Healthcare and Zoy Home 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 Zoy Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humanwell Healthcare and Zoy Home.
Diversification Opportunities for Humanwell Healthcare and Zoy Home
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Humanwell and Zoy is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Humanwell Healthcare Group and Zoy Home Furnishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoy Home Furnishing 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 Zoy Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoy Home Furnishing has no effect on the direction of Humanwell Healthcare i.e., Humanwell Healthcare and Zoy Home go up and down completely randomly.
Pair Corralation between Humanwell Healthcare and Zoy Home
Assuming the 90 days trading horizon Humanwell Healthcare Group is expected to generate 0.72 times more return on investment than Zoy Home. However, Humanwell Healthcare Group is 1.39 times less risky than Zoy Home. It trades about 0.01 of its potential returns per unit of risk. Zoy Home Furnishing is currently generating about 0.0 per unit of risk. If you would invest 2,215 in Humanwell Healthcare Group on August 24, 2024 and sell it today you would earn a total of 34.00 from holding Humanwell Healthcare Group or generate 1.53% 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. Zoy Home Furnishing
Performance |
| Timeline |
| Humanwell Healthcare |
| Zoy Home Furnishing |
Humanwell Healthcare and Zoy Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humanwell Healthcare and Zoy Home
The main advantage of trading using opposite Humanwell Healthcare and Zoy Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humanwell Healthcare position performs unexpectedly, Zoy Home 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 Zoy Home will offset losses from the drop in Zoy Home's long position.| Humanwell Healthcare vs. China State Construction | Humanwell Healthcare vs. Poly Real Estate | Humanwell Healthcare vs. China Vanke Co | Humanwell Healthcare vs. China Merchants Shekou |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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