Correlation Between Humanwell Healthcare and JuneYao Dairy
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By analyzing existing cross correlation between Humanwell Healthcare Group and JuneYao Dairy Co, you can compare the effects of market volatilities on Humanwell Healthcare and JuneYao Dairy 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 JuneYao Dairy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humanwell Healthcare and JuneYao Dairy.
Diversification Opportunities for Humanwell Healthcare and JuneYao Dairy
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Humanwell and JuneYao is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Humanwell Healthcare Group and JuneYao Dairy Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JuneYao Dairy 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 JuneYao Dairy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JuneYao Dairy has no effect on the direction of Humanwell Healthcare i.e., Humanwell Healthcare and JuneYao Dairy go up and down completely randomly.
Pair Corralation between Humanwell Healthcare and JuneYao Dairy
Assuming the 90 days trading horizon Humanwell Healthcare Group is expected to generate 0.82 times more return on investment than JuneYao Dairy. However, Humanwell Healthcare Group is 1.22 times less risky than JuneYao Dairy. It trades about -0.01 of its potential returns per unit of risk. JuneYao Dairy Co is currently generating about -0.05 per unit of risk. If you would invest 2,717 in Humanwell Healthcare Group on October 15, 2024 and sell it today you would lose (642.00) from holding Humanwell Healthcare Group or give up 23.63% 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. JuneYao Dairy Co
Performance |
| Timeline |
| Humanwell Healthcare |
| JuneYao Dairy |
Humanwell Healthcare and JuneYao Dairy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humanwell Healthcare and JuneYao Dairy
The main advantage of trading using opposite Humanwell Healthcare and JuneYao Dairy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humanwell Healthcare position performs unexpectedly, JuneYao Dairy 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 JuneYao Dairy will offset losses from the drop in JuneYao Dairy's long position.| Humanwell Healthcare vs. Heilongjiang Publishing Media | Humanwell Healthcare vs. Anhui Gujing Distillery | Humanwell Healthcare vs. Beijing Enlight Media | Humanwell Healthcare vs. Duzhe Publishing Media |
| JuneYao Dairy vs. Zhengzhou Coal Mining | JuneYao Dairy vs. Chengtun Mining Group | JuneYao Dairy vs. Hefei Metalforming Mach | JuneYao Dairy vs. Aurora Optoelectronics Co |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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