Correlation Between Humanwell Healthcare and Shanghai AtHub
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By analyzing existing cross correlation between Humanwell Healthcare Group and Shanghai AtHub Co, you can compare the effects of market volatilities on Humanwell Healthcare and Shanghai AtHub 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 AtHub. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humanwell Healthcare and Shanghai AtHub.
Diversification Opportunities for Humanwell Healthcare and Shanghai AtHub
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 AtHub Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai AtHub 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 AtHub. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai AtHub has no effect on the direction of Humanwell Healthcare i.e., Humanwell Healthcare and Shanghai AtHub go up and down completely randomly.
Pair Corralation between Humanwell Healthcare and Shanghai AtHub
Assuming the 90 days trading horizon Humanwell Healthcare is expected to generate 2.24 times less return on investment than Shanghai AtHub. But when comparing it to its historical volatility, Humanwell Healthcare Group is 1.29 times less risky than Shanghai AtHub. It trades about 0.01 of its potential returns per unit of risk. Shanghai AtHub Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,944 in Shanghai AtHub Co on September 28, 2024 and sell it today you would earn a total of 15.00 from holding Shanghai AtHub Co or generate 0.77% 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 AtHub Co
Performance |
| Timeline |
| Humanwell Healthcare |
| Shanghai AtHub |
Humanwell Healthcare and Shanghai AtHub Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humanwell Healthcare and Shanghai AtHub
The main advantage of trading using opposite Humanwell Healthcare and Shanghai AtHub positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humanwell Healthcare position performs unexpectedly, Shanghai AtHub 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 AtHub will offset losses from the drop in Shanghai AtHub's long position.| Humanwell Healthcare vs. Agricultural Bank of | Humanwell Healthcare vs. Industrial and Commercial | Humanwell Healthcare vs. Bank of China | Humanwell Healthcare vs. China Construction Bank |
| Shanghai AtHub vs. Industrial and Commercial | Shanghai AtHub vs. Agricultural Bank of | Shanghai AtHub vs. China Construction Bank | Shanghai AtHub vs. Bank of China |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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