Correlation Between Humanwell Healthcare and BeiGene
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By analyzing existing cross correlation between Humanwell Healthcare Group and BeiGene, you can compare the effects of market volatilities on Humanwell Healthcare and BeiGene 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 BeiGene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humanwell Healthcare and BeiGene.
Diversification Opportunities for Humanwell Healthcare and BeiGene
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Humanwell and BeiGene is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Humanwell Healthcare Group and BeiGene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BeiGene 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 BeiGene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BeiGene has no effect on the direction of Humanwell Healthcare i.e., Humanwell Healthcare and BeiGene go up and down completely randomly.
Pair Corralation between Humanwell Healthcare and BeiGene
Assuming the 90 days trading horizon Humanwell Healthcare Group is expected to under-perform the BeiGene. In addition to that, Humanwell Healthcare is 1.06 times more volatile than BeiGene. It trades about -0.11 of its total potential returns per unit of risk. BeiGene is currently generating about 0.33 per unit of volatility. If you would invest 16,121 in BeiGene on October 25, 2024 and sell it today you would earn a total of 2,896 from holding BeiGene or generate 17.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Humanwell Healthcare Group vs. BeiGene
Performance |
| Timeline |
| Humanwell Healthcare |
| BeiGene |
Humanwell Healthcare and BeiGene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humanwell Healthcare and BeiGene
The main advantage of trading using opposite Humanwell Healthcare and BeiGene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humanwell Healthcare position performs unexpectedly, BeiGene 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 BeiGene will offset losses from the drop in BeiGene'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 |
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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